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Tue 4 May 2010 08:43 PM

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Oil could reach $100 a barrel - Kuwait

Escalations in regional tensions, security developments and weather changes could all be factors.

Oil prices could reach $100 a barrel if there were "dramatic" developments in the Gulf or elsewhere, Kuwait's state news agency KUNA quoted an oil official as saying on Tuesday.

An escalation in tension between Iran and the West over the former's nuclear activities, security developments in OPEC member Nigeria and weather changes could push the price to $100, KUNA quoted Nawal al Fuzaie as saying.

Kuwait's oil minister said last week that OPEC would pump more oil if the price went above $100 and stayed there.

US crude traded around $83 a barrel on Tuesday. The price has traded mostly above $80 since early March.

Any such change in the factors that could push the price to $100 would be temporary, said Fuzaie, an assistant undersecretary at the OPEC member state's oil ministry. Fuzaie is also Kuwait's OPEC governor.

Growth in the US, European, Chinese and Indian economies was increasing demand for crude and products and pushing up the price, she said. But large stockpiles in industrial nations were weighing on prices, she added.

Kuwait is the world's fourth largest oil exporter, and crude exports are the mainstay of its economy.

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