Oil market healthier, OPEC may hold fire-Saudi min

SINGAPORE, Feb 12 (Reuters) OPEC may not need to cut or raise output when it meets in a month's time if healthier market conditions prevail, the Wall Street Journal quoted Saudi Arabia's oil minister as saying on Monday.

''If you are asking me are we (OPEC) going to take additional cuts or increase supply, I do not know,'' Ali al-Naimi, oil minister of the world's biggest producer and the cartel's most powerful voice, told the paper in an interview on Sunday.

''But most probably, if the trend is like what it is like today, with the market getting in much, much better health and balance, there may not be any reason to change.'' Naimi, in his first direct comments on the condition of the market since prices rebounded to nearly a barrel from a 20-month low of .90 in mid-January, also said the kingdom was producing about 8.5-8.6 million barrels per day, confirming a cut of about 1 million bpd from six months ago, the paper reported.

Oil prices deepened losses, falling 75 cents to .14 a barrel on Monday, partly on Naimi's comments.

The Organisation of the Petroleum Exporting Countries (OPEC) has agreed two production cuts for a total of 1.7 million bpd over the past four months, aiming to stem a deep slide in prices by draining overfilled consumer nation inventories.

Those cuts coupled with a blast of cold U.S. weather, renewed investor demand and a slight rise in geopolitical concerns have helped revive prices, although Naimi warned that things could yet change ahead of OPEC's March 15 meeting.

''I would not be surprised to see different figures and a different situation on the 15th of March,'' Naimi said.

Many analysts believe OPEC is aiming to sustain a price of around - a barrel for U.S. crude, although neither Saudi Arabia nor the group as a whole has set a specific target.

The Wall Street Journal said Naimi hinted that he may want to retain his position after King Abdullah's first major cabinet reshuffle, expected as soon as next month.

''Ministers normally do not retire,'' said Naimi, who is near the end of a third four-year term. ''Ministers are appointed by the king and relieved by the king, unless there is serious medical reason, and as you can see, I am fairly fit and in good shape.'' REUTERS DKS BST0707