Crude prices could hit $60 in Q3 - Iran oil minister

Iran's oil minister said on Sunday he believed crude prices could rise to $60 a barrel in the third quarter of 2009, but that $75-80 was needed to secure future supply.

Gholamhossein Nozari also called for cooperation between OPEC and producers outside the 12-member organisation to help stabilise the market, with oil prices still trading about 65 percent below their peak in mid-2008.

He told a news conference any further OPEC production cut would depend on the oil market situation.

"With $75-80 per barrel ... producers can secure the future of energy supply in the world," Nozari said.

Asked what OPEC saw as the highest price for its crude this year, he said: "An oil price of $60 is within reach in the third quarter."

On Thursday, oil prices rose nearly 5.8 percent to $52.24 a barrel, partly fuelled by a rally on Wall Street.

The Organisation of the Petroleum Exporting Countries next meets on May 28 to discuss crude oil production policy.

It has already agreed to cut output since September by about 4.2 million barrels per day (bpd), or about 5 percent of world supply, its biggest ever production cut. It is estimated to have delivered about 80 percent of those cuts so far.

Asked whether he believed OPEC should decide to reduce production further, Nozari said: "The situation of the market and world demand ... should be evaluated and then we (OPEC) will decide about any further cut."

He also reiterated a call for more cooperation between producers inside and outside OPEC.

"It seems that whenever OPEC members cut output, non-OPEC members increase it. These two (groups) should cooperate with each other to stabilise the market," he said.

On Friday, the International Energy Agency said oil supply from outside OPEC would fall in 2009 from 2008, as the global financial crisis lower oil prices and weakened demand curb investment.

The weakening trend for non-OPEC supply, adding to the impact of OPEC output cuts, could push oil prices sharply higher when demand rebounds during any economic recovery, analysts say. (Reuters)