Oil prices may touch $100 per barrel in winter: Hosseinian

With the threat of UN sanctions on Iran over its atomic programme looming large, Iran's Deputy Oil Minister Mohammad Hadi Nejad-Hosseinian on Tuesday said oil prices could touch $100 per barrel in the winter months, due to the huge gap between demand and supply.

Hosseinian, who met Petroleum Minister Murli Deora in New Delhi on Tuesday, added that given the acute global shortage of oil and gas, Iran felt that no sanctions would be imposed with respect to this sector.

Even though he did not rule out the possibility of a military attack by the US on Iran, he added that Tehran would not use oil as a weapon. "I don't think we will stop export of oil even if the US attacks us," he said.

Oil prices on Tuesday crossed $74 per barrel because of fears of disruption of oil supply due to the dispute over Iran's nuclear programme.

Iran is the world's fourth largest oil exporter and sells about 4 million barrels per day.

In crude production, it comes just after Saudi Arabia in the Organisation of Petroleum Exporting Countries. It is the second largest gas producer in the world after Russia.