OPEC can boost output by 2 million bpd -- Chairman

By Ahmad Hajjaji KUWAIT, April 20 (KUNA) -- The Organization of Petroleum Exporting Countries (OPEC) has the ability to increase its production by two million barrels a day, a senior OPEC official said.
Visiting OPEC Conference President and Algeria's Energy and Mines Minister Chakib Khelil told KUNA the increase could mainly come from Saudi Arabia, adding that other countries like Algeria, Libya, Venezuela, and Nigeria could also contribute in the raise.
Talking to reporters during his visit to Kuwait Chamber of Commerce and Industry (KCCI), Khelil said that the hike in oil prices is a result of economic crisis in the US and the decline of the US dollar's exchange rate.
He pointed out that the price of oil increases by USD 4 whenever the dollar's exchange rate decreases by one percent.
If the US economy improves by the end of 2008 or early 2009, oil prices would decline, he noted.
Khelil said, however, that if production is increased now, prices will not be affected because there is balance between supply and demand currently.
Output was raised in 2007 and prices remained unchanged, he said.
The Algerian official said there are many projects and investment opportunities in his country and welcomed Kuwaiti investments in that area.
Khelil is visiting Kuwait with a delegation that is accompanying Algerian President Abdelaziz Bouteflika who began an official visit to the state on Saturday.(end) ahj.aa.ris KUNA 201247 Apr 08NNNN