JAKARTA, July 29: Crude oil prices above 120 dollars a barrel are “abnormal” and could fall to around 78 dollars under the right circumstances, Opec President Chakib Khelil said here on Tuesday.

“If dollar continues to strengthen and the political situation (regarding Iran) improves, the long-term prices will be about 78 dollars,” Khelil told reporters in Jakarta, adding the market was well-supplied with oil.

Crude prices have doubled over the past two years but fallen from record highs of around 147 dollars a barrel reached earlier this month. They were trading at around 125 dollars on Tuesday.

“There’s a balance in the market. I would say stocks are at a good level and there hasn’t been any disruption in demand,” Khelil said.

Asked whether any member of the Organisation of the Petroleum Exporting Countries should cut production if oil prices continued to fall, he said: “No, I don’t think so’’. —AFP