April 9 (Bloomberg) -- Oil prices of about $50 a barrel are a “good thing” for now, Algerian Oil Minister Chakib Khelil told Algerie Presse Service.

“If prices stay where they are, at about $50, or even drop a little, it will be a good thing because we should not forget that the global economy is shrinking,” Khelil told the state- run news service in Algiers yesterday.

The market continues to be oversupplied and the Organization of Petroleum Exporting Countries will decide at its May 28 meeting whether to cut production, depending on the state of the global economy, he said.

“If the economy strengthens by then, we won’t need to change the quotas,” he told the news service.

To contact the reporter on this story: Maher Chmaytelli in Cyprus at mchmaytelli@bloomberg.net

Last Updated: April 9, 2009 02:28 EDT