UPDATE 1-Algeria oil minister favours new OPEC cuts-paper

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ALGIERS, April 19 (Reuters) - OPEC will be taking a big risk if it does not make a further adjustment to oil supply, a newspaper quoted Algerian Energy and Mines Minister Chakib Khelil as saying on Sunday.

"In my opinion we are taking a big risk if we do not re-adjust supply. It would be better, given the circumstances, not to take such risks," Algeria's Liberte newspaper quoted Khelil as saying.

OPEC, whose members pump more than a third of the world's oil, have called a meeting for May 28 to assess whether fresh output cuts are needed to boost prices that have plummeted because of the global economic slowdown.

In separate comments broadcast on Algerian television late on Saturday, Khelil said he expected oil prices to fall further before the next OPEC meeting and then pick up later because of increased summer demand.

He said he expected oil prices to end the year at around $60 a barrel and that the average price over the year would be between $40 and $50 a barrel.

"Some people are buying oil to stock it and resell it later because they know the prices will go up," Khelil said. (Reporting by Lamine Chikhi; Writing by Christian Lowe; Editing by David Cowell)