OPEC president says sees no demand for more oil

ALGIERS (Reuters) - Oil producers cannot pump more without demand for extra supply, and at the moment that demand does not exist, OPEC President Chakib Khelil said on Monday.

He added in an interview on Algerian state radio that supply and demand was balanced and prices would remain high until year-end due to speculation, developments in the dollar and possible policy decisions by the European central bank.

"We cannot raise output -- whether it's OPEC producers or others -- unless there really is a demand on the world market," said Khelil, who is Algeria's energy minister.

"Now, you know that demand has shrunk this year and continues to shrink, and so demand is not there to absorb supplementary production.

"People will tell you, 'where is the demand so I can produce more?'"

On prices, Khelil said: "It's impossible to predict. Anything could happen. All I can say is that prices will be high, and will remain high until the end of the year."

In answer to a question, he said he did not think oil would rapidly breach the $200 a barrel mark, adding prices would continue to perform their habitual "yo-yo" in relation to factors like geopolitical tensions and the dollar.

Oil prices hit a record near $140 a barrel last week and have doubled from a year ago, stoking inflation and triggering protests worldwide.

U.S. crude and London Brent crude futures rose more than $2 on Monday, spurred by disruptions in Nigerian crude output and supply worries stoked by escalating tensions between Israel and Iran.