The oil market is supplied with enough crude.

This is the view of the group’s secretary-general, Abdullah al-Badri, expressed on Saturday during a visit to Iran.

“Oil supply to the market is enough and high oil prices are not due to a shortage of crude but rather it is because of the decrease in the dollar’s value, shortage of refinery capacity and some political tensions in the world,” said a-Badri, according to the Iranian state news agency.

According to Reuters, his views are in line with those of OPEC officials in Iran, the second-largest producer in the 13-member cartel.

US oil futures headed towards $108 a barrel today following al-Badri’s statement.  Reuters reports that “light sweet crude for May delivery rose $1.31 cents to $107.54 a barrel by 1035 GMT (6:35 a.m. EDT) after leaping $2.40 a barrel on Friday, recouping all of the week’s earlier losses.”

“Oil prices could hit $160 a barrel as soon as next week,” says Dominic Frisby in The Daily Reckoning UK.

“At least, that’s what ‘Zapata’ George Blake, the Texan oil analyst, reckons. ‘Zapata’ George has a habit of making bold calls that often seem to be proved right. He thinks there’s an imminent supply squeeze ahead, which will cause the oil price to spike. Daily consumption is exceeding daily production, he says.”