"If the current conditions remain the same, a period when oil is supplied at $200 a barrel is not out of the question,'' Gholamhossein Nozari told the IRNA news agency.

He said the weak US dollar and supply concerns from Nigeria were the main reasons behind the surge in oil prices.

On Wednesday, crude prices hit a record high of $123.53 a barrel.

"The US dollar has weakened ... Another reason is related to problems in Nigeria's crude production,'' Nozari said.

Earlier this week, the U.S. investment bank Goldman Sachs forecast an oil price of more than $200 a barrel within two years.

Source: By RIA Novosti