Algerian Energy Minister Chakib Khelil said Wednesday the Organization of Petroleum Exporting Countries is unlikely to cut its output when it meets May 28 if oil prices maintain their rise and the economy its signs of recovery.
If the oil price continues to rise and the "good news on the economy continues" such as the bullish mood on stock exchanges, "I don't see how we are going to reduce" output at the meeting, Khelil, a veteran OPEC participant, said in a telephone interview with Dow Jones Newswires.
However, he added "it's too early to say" what the decision might be. If the economy "slows again, yes, supply will be very important."
Khelil said compliance with previous OPEC commitments to cut 4.2 million barrels a day, would also weigh on the decision.
Based on the latest estimates, it now stands at 85%, with close to 650,000 barrels a day left to cut, he said.
"We hope it will be 90%" when OPEC meets on May 28, he added. "That would be exceptional. OPEC never reached 70%" of compliance in the past.