Iran says oil likely to touch $100 per barrel

Iran's OPEC governor said that that the oil market is balanced and is likely touch $100 per barrel , the Oil Ministry's website SHANA said in a statement

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, governor Mohammad Ali Khatibi said.

An extraordinary meeting by OPEC members prior to schedule meeting for June 2011 is unlikely adding oil experts believe OPEC does not need to meet while the market is balanced, it added.

Iran's governor for OPEC noted that the level of oil inventories in the Organization of Economic Cooperation and Development (OECD) countries are upper 7 to 8 days in comparison to their past five year average adding despite this, holding an extraordinary meeting depends on OPEC oil ministers views and the result of their consultation on the issue.

Surging oil prices to more than 90 dollars per barrel is not the result of oil shortages in the market but follows the severe and unprecedented cold in Europe, the United States and China, Christmas holidays, dollar depreciation and increasing demand for gasoline and heating oil, Khatibi said.

He further said that injecting financial resources to the U.S economy as a psychological element as well as speculators' incentives to more trade in this situation are among the other non fundamental reasons of surging oil prices that could push prices toward 100 dollars per barrel.