Oil price may surge to $80 a barrel

Oil prices this year could surge up to $80 a barrel due to the increasing demand for the gasoline and disruptions in crude supplies from Nigeria, said a senior Iranian oil official.

"The $80 price is a maximum forecast for oil in the current year but the average price of oil in the current year will be $66.20," Mohammad Ali Khatibi, deputy director for international affairs of the National Iranian Oil Company (NIOC), said.

He said that storms like Cyclone Gonu that hit the south of Iran and disturbed the oil export from Oman, leading to a price raise of around $80 a barrel.

He further pointed out that within the next three months, the increase in gasoline consumption, seasonal storms and problems in Nigeria's oil supply would cause the price of oil to seriously increase.

"This will raise concerns with consumer countries," he added.

Reports quoting traders said the long running quarrel between Iran and the West over Iran's nuclear programme has also helped prop up prices.

However, Khatibi did not mention the dispute as a supporting factor.