Tehran, 27 December 2010

Iran's OPEC governor Mohammad Ali Khatibi said on Sunday that the oil market was stable and the crude prices could reach $100 per barrel, the 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," Khatibi said, SHANA reported.

Oil hovered around its highest levels in more than two years on Friday, supported by cold weather across the globe, appetite for risk assets and signals from OPEC it would not arrest the rally.

"In the opinion of the experts there is no need for an emergency OPEC meets under stable oil market conditions," Khatibi said. World economy can withstand $100 oil price.

The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said on Saturday, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.

Analysts have said oil producing countries are likely to raise output after crude rallied more than 30 percent from a low in May because they fear prices could damage economic growth in fuel importing countries.

European benchmark ICE Brent crude for February closed at $93.46 on Friday after hitting $94.74 a barrel, its highest level since Oct. 2008.

Arab oil exporters meeting in Cairo this weekend said they saw no need to supply more crude as stocks were high and prices had been inflated temporarily by cold weather in Europe.

Ends --

Reuters - for Commodities Now.