July 20 (Bloomberg) -- The “equilibrium” price for crude oil once excess supplies are removed for the market is about $90 a barrel, Algerian Energy Minister Chakib Khelil said today.

This level will be reached when inventories are trimmed down to 52 days worth of consumption, Khelil said in an interview in Milan.

Stockpiles among developed economies were at 62.5 days at the end of May, according to the International Energy Agency. Crude prices, currently around $64 in New York, will trade between $65 and $70 for the rest of the year, Khelil said.

The “oil price will stay between $65 to $70 in 2009,” Khelil said. Crude oil “will go over $70 next year depending on the economy. The equilibrium price, whenever it reaches the 52 weeks of inventory, is going to be around $90.”

The Organization of Petroleum Exporting Countries, of which Algeria is a member, will only announce further production cuts “if there is a demand disruption, or a fall of demand in the market,” Khelil said. OPEC next meets on Sept. 9 in Vienna.

To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.netTommaso Ebhardt in Milan at tebhardt@bloomberg.net

Last Updated: July 20, 2009 10:59 EDT