Oil price could touch $170 a barrel, warns OPEC chief

Crude oil prices have touched $140 a barrel with the fresh surge in oil prices coming amid a declining dollar and Libya, one of the major producers, threatening to cut output after possible US actions against oil-producing nations.

Rising oil prices have strained economies and spurred protests across the globe, prompting Organization of Petroleum Exporting Countries (OPEC) kingpin Saudi Arabia to pledge an increase in production.

The Algerian Energy Minister and President of OPEC, Chakib Khelil, said on Thursday that prices could reach $170 dollars a barrel in the coming months, and stressed that speculation - and not a supply problem - was driving oil to new highs.

"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," Khelil told France 24 television.
However, he dismissed speculations that crude prices could soon touch $200 a barrel. Khelil said that such a situation would come only if there is major crisis like a halt in oil production in Iran.

If that is the case the prices could possibly move to "$200, 300, 400", he said.
Meanwhile US stocks tumbled on Thursday, with the Dow sliding more than 350 points to a 21-month low. And crude prices rose by five and a half dollars, touching the highest rate since June 16.

Crude prices have been rising for the five-six years due to surging demand from emerging economies like China and India.