Oil price rise predicted

An oil analyst believes competition and the strong New Zealand dollar may help to keep a lid on rising oil prices.

There is speculation the price of crude could reach US$80 a barrel due to rising tensions in the Middle East and Nigeria, more demand from America and Opec constraints on supply.

However, locally, BP and Shell have dropped their prices by five cents a litre in another battle for supremacy at the pump.

Analyst Richard Hale says there is a lot of upward pressure on the price of oil and the question will be whether geo-political factors place more tension on the situation. He predicts prices will rise in New Zealand but exchange issues might help to dampen increases.

US crude rose just over a dollar a barrel overnight to US$65.20.

- NEWSTALK ZB