Oil likely to hit $250 a barrel: Gazprom head

The price of oil is likely to hit 250 dollars a barrel, Alexei Miller, head of Russian energy giant Gazprom, warned on Tuesday without saying when the surge would come.

"Today we are witnessing a critical increase in the price of hydrocarbons," Miller told journalists during a

meeting of the European Business Congress.

"Now the price is going to reach a level never-before-seen. The perspective will be $250 per barrel of oil and the competition for this resource will be strong," he added.

Miller said that while speculation had played a role in oil prices, "this influence was not decisive."

On Tuesday, New York's main oil futures contract, light sweet crude for July delivery, dipped 41 cents to $133.94 a barrel, after losing more than $4 in value on Monday.

Brent North Sea crude for July delivery lost 66 cents to $133.25. Crude futures pulled back on Monday from last week's record high points as the dollar firmed against the euro and OPEC kingpin Saudi Arabia stressed its willingness to meet any increase in global demand.

Last Friday, New York crude had spiked by $10.75 a barrel - the biggest-ever one-day jump - after

rocketing to an all-time peak of $139.12.

Brent had also hit a lifetime pinnacle of $138.12 and gained $10.15 in value on Friday.