Many Opec member states have started reducing oil supply in line with the group's biggest-ever output cut agreed earlier this month and crude prices are expected to begin stabilising within the next two months, Opec's president said today.
"Many countries have implemented the reduction. I think all of them will implement it because they do not have a choice," Chakib Khelil told Algerian state radio.
The Organisation of the Petroleum Exporting Countries agreed on December 17th to reduce supplies by 2.2 million barrels per day.
"I think this reduction will have an impact on prices in January-February because it is a strong reduction," Mr Khelil said.
"We seek to stabilise the price and prevent it from falling further. I think we will reach this stabilisation in January-February, God willing," he added.
Mr Khelil, also Algerian energy and mines minister, said he expected the level of stocks to be brought to 52 days by the end of 2009.
Reuters