Oil price could hit $150-170

Gasoline prices over 5.00 dollars per gallon are displayed at a Shell station on Monday in San Mateo, California. Gasoline prices continue to rise as the national average for regular unleaded is at a new record high of 4.10 dollars per gallon.Photo: AFP

The president of Opec, Algerian Energy Minister Chakib Khelil, forecast on Thursday that oil prices could rise to 150-170 dollars a barrel during the northern hemisphere summer.
"I predict probably prices of 150 to 170 dollars this summer. It (the market) will probably fall a bit towards the end of the year," he said in an interview with the France 24 television channel.
Khelil said he did not expect prices to hit 200 dollars a barrel, barring a major market crisis such as a halt in production in Iran.
In that case, he added, prices could possibly surge to "200, 300, 400 dollars."
In the short term, he said, "everything depends on the European Central Bank and a decision it could take to raise eurozone interest rates."
"At that time, I think the price of oil will increase."
ECB policymakers are to meet July 3 when many analysts predict they will decide to raise their benchmark rate by a quarter of a point to 4.25 percent in the face of rising inflationary pressure.
A strong euro, and a weaker dollar, would drive up demand for oil, which is marketed in the US unit and becomes cheaper for holders of non-dollar currencies.
Khelil also cited "threats against Iran," where US and European officials suspect that authorities may be trying to develop nuclear power for military purposes.
"If they (threats) increase, I think the price of oil will rise further this summer as it would coincide with stronger demand for gasoline (petrol), particularly in the United States."