Jakarta - Crude oil prices above 120 dollars a barrel are "abnormal" but they could fall to around 78 dollars under the right circumstances, the president of OPEC said Tuesday.

"If the dollar continues to strengthen and the political situation improves, then the long-term prices will be about 78 dollars," Chakib Khelil said while on a visit to Indonesia.

He added that the market was well-supplied with oil, refuting arguments that there is a world shortage of the commodity and members of the Organization of the Petroleum Exporting Countries (OPEC) should increase production.

"There's a balance in the market," Khelil said. "I would say [oil] stocks are at a good level, and there hasn't been any disruption in demand."

He added that he did not believe OPEC members should cut production if oil prices continued to fall.

During his visit, Khelil also urged Indonesia to remain a member of the cartel even though it had seen its oil production fall and has become an oil importer.

Indonesian Energy Minister Purnomo Yusgiantoro said Indonesia would quit OPEC after December 31. (dpa)