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By Lee Wild

Date: Friday 27 Jun 2008

LONDON (ShareCast) - A warning from OPEC’s president Chakib Khelil that oil prices could hit $170 this summer and worries of production cuts in Libya have sent crude prices to record highs above $140.

Algerian energy minister Khelil said prices will probably trade between $150 and $170 over the next few months before easing later in the year. He thinks the $200 predicted by Goldman Sachs is unlikely.

Global oil prices hit a high of $142.26 Friday, although profit taking has prompted a drift back to the $140 mark. Khelil puts most of the blame for the price increase on the weak dollar.

Investors also noted Libya’s threat to cut output because of US aggression against OPEC members and the North African nation’s belief that the market is currently well supplied.

But many analysts doubt the Libyans will carry out their threat, not with prices where they are.

US light crude for August delivery is currently up 99 cents at $140.63.

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