OPEC could cut production again in March

ALGIERS, Algeria, Feb. 23 (UPI) -- The Organization of the Petroleum Exporting Countries may further cut production quotas in an effort to control oil prices' downward trend, ministers said.

"There is a strong possibility that OPEC will decide on March 15 to reduce production further to help stabilize prices," said Algerian Oil Minister Chakib Khelil.

The suggestions are in line with recent trends from the oil cartel. OPEC in December cut production quotas by 4.2 million barrels per day as prices on the New York Mercantile Exchange gave back more than $100 from their July highs of $147.27 per barrel.

Khelil, who served as OPEC president in 2008, said the global economic recession translated into a fall in demand, putting strain on prices, the Platts news service reports.

"There is a global economic crisis, and demand is falling more and more," he said.

The minister said the economic outlook was uncertain, but demand was expected to rebound in the summer of 2009.

"We don't yet see the end of the crisis, and we don't know when the (world economy) will stabilize," he said. "However, we do believe that demand will pick up around the summer and we will see prices recover also."