"Many experts expect oil prices to reach $70 per barrel at the end of this year. We think it may happen," Iranian Deputy Oil Minister Nejad Hosseinian said.
He said oil prices were at an all time high as "demand is higher than supplies. (For producers to) increase supplies of crude will take time."
India, which depends on imports for 73 per cent of its oil needs, is already facing a huge burden due to crude prices crossing $60 dollars a barrel.
While import bill has shot up 40 per cent, the government has been forced to raise fuel prices twice in the last one year despite state-run firms absorbing almost Rs 18,000 crore (Rs 180 billion) of impact on petrol, diesel, LPG and kerosene prices in 2004-05 and Rs 9,800 crore (Rs 98 billion) this fiscal.
"If demand rises more and there is no supply to cover it, prices will go up," Hosseinian said. He said experts have warned of crude prices further going up from current levels of $61 dollars a barrel as demand goes up with setting in of winter.
"We think it may happen," he said when asked if Tehran shared the views of experts, who have predicted crude crossing $70 dollars a barrel by end of 2005.