TEHRAN, Apr. 26 (Mehr News Agency) - The National Iranian Oil Company's deputy director for international affairs said here on Saturday that the huge liquidity in industrialized Western countries is the main reason for the unprecedented rise in the price of oil in international markets and predicted that the trend would continue.
"Over the past few years, geopolitical crises in the Persian Gulf, Iraq, Nigeria, and other parts of the world have created temporary periods of increase in the price of oil," Hojjatollah Ghanimifard noted.
However, the current rise in the price of oil is not a result of these "traditional" political factors, since they can only have transitional effects and cannot explain the current situation, he said.
Oil prices are soaring because of the massive amount of liquidity in industrialized countries, specifically in the United States and Britain, he opined.
And international oil markets do not, by any means, suffer from a shortage of supply, Ghanimifard pointed out.
He went on to say that it is not very likely that U.S. threats will motivate certain Middle Eastern countries like Saudi Arabia to increase oil production since "increasing production requires an enormous investment; it would take at least two or three years and would not be an easy thing to do."
Currently, OPEC allows increased production only for certain oil fields and even such action would not balance or lower the price of oil, he added.
The price of oil hit $119 a barrel on Saturday.
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