OPEC ministers say no need to raise output

ABU DHABI (Reuters) - OPEC oil ministers signaled on Monday the group would not boost output even as prices approached $100 per barrel, despite warnings from the West's energy watchdog, which described prices as "alarming."

The United Arab Emirates' oil minister said he was not concerned by rising prices, echoing comments by other OPEC producers Iran and Venezuela this week. Algeria's oil minister said the oil market was balanced.

"There is no shortage of oil, the market is well supplied. We're monitoring the market very closely," UAE minister Mohammed bin Dhaen al-Hamli said on Monday at an energy forum in Abu Dhabi.

Algerian Oil and Energy Minister Youcef Yousfi, quoted by the official Algerian news agency APS, said the market "is balanced and prices are satisfying for producers and consumers."

He said he wished "prices will remain at current levels in the next months."

U.S. crude fell below $91.50 a barrel on Monday, while Brent crude held near $98, also near a 27-month high. The rally has raised concerns in consuming countries about the impact of higher energy costs on economic recovery.

The head of the International Energy Agency, which advises 28 industrialized countries, said on Monday at the same event as Hamli that the current oil price was alarming and would have a negative impact on recovery.

"We are concerned about the speed of the rising oil price, which can harm the growth of economies," Nubuo Tanaka, executive director of the agency, told reporters on the sidelines of the forum.

TO WORRY OR NOT TO WORRY?

"If the current price continues, it will have a negative impact," Tanaka said.

"Global crude oil stocks are still high, but they're declining. OPEC's spare capacity is diminishing and the supply buffer in the market is getting lower," he added.

French oil major Total on Sunday also raised concerns about the quick rise of oil prices and the risk to economic recovery.

The UAE oil minister played down the IEA's concern, saying fluctuating prices were a part of the industry right now and not a matter of worry.

"We're seeing gradual economic recovery; we are seeing positive signs of economic recovery. We need to see whether this is sustained," he said.

"The price keeps going up and down, and all I can say for now is that we are happy," Hamli told reporters.

Oil officials of Iran, Venezuela and Libya have said they see no need for producers to act if oil reaches $100 a barrel.

Tanaka told reporters OPEC "needs to show more flexibility" in increasing oil production.

Oil hit a record above $147 a barrel in 2008, and while analysts do not expect a repeat of that any time soon, there are fears that if OPEC does not signal its intention to add supplies, prices could rise significantly above $100.

(Additional reporting by Lamine Chikhi in Algiers; Editing by Alex Lawler and Jane Baird )