Iran predicts oil to hit $100 per barrel

Iran’s OPEC Governor Mohammad Ali Khatibi says that the global oil prices are stable and balanced, and the crude prices may reach $100 per barrel.

Khatibi said on Sunday that since the oil market is balanced, holding an extraordinary meeting by OPEC is unlikely, Iran’s oil ministry’s website Shana reported.

“It is unlikely that OPEC holds an emergency meeting… There is a balance between supply and demand in the market… It is possible that the price of crude reaches $100 per barrel,” the official noted.

“Experts believe there is no need for an emergency OPEC meeting under the stable oil market conditions,” he added.

Khatibi also explained that the crude oil inventories in the world are high and the market is not suffering from oil shortages.

Global oil prices are hovering around their highest levels in more than two years and are pushing closer to $100 as the cold weather around the world has raised demand.

Benchmark Brent crude closed 48 cents down at more than $93 on Friday after hitting nearly $95 earlier in the day, the highest level since October 2008.

Analysts said oil could continue its rally on strong global demand and falling inventories in 2011, which will be a strong year for risk assets as confidence about the global economic recovery picks up.

Khatibi underlined various factors behind the rise in the oil prices, saying, “The outbreak of unprecedented cold in Europe, America and China, the weak dollar and increased demand for fuel due to the holiday season have raised the price of oil to more than $90.”

Earlier in December, he said that the price of crude oil is undervalued, noting that global markets are close to a crisis of uncertain oil supply.

Meanwhile, Iranian Oil Minister Masoud Mirkazemi said in mid-December that Tehran favors an increase in global oil prices, announcing that the crude oil at $100 a barrel is an appropriate price.

Many oil ministers of OPEC member states echoed the same views, downplaying the potential negative effect of higher oil prices on consumer countries.