Iran's Opec governor expects new oil price record

Tehran: Iran's Opec governor said on Monday he expected the oil price to hit a new record high due to increased transportation during the summer, the state broadcaster reported.

"With the onset of summer and increased transportation the record oil price will be broken once again," Mohammad Ali Khatibi was quoted as saying.

Oil fell more than $1 to near $126 on Monday, after it hit an all-time hight of $135.09 a barrel on May 22.

Khatibi, appointed as Iran's Opec governor last month, also said psychological factors were behind the high oil price.

"The factors behind the breaking of the oil price record are not supply and demand, but rather psychological factors existing in the market," he said.