Iran says that if oil hits $100 a barrel, it will not hurt the global economy.

The statement comes after OPEC increased its estimate of the world's oil demand for the next year.

Oil was selling for $85 a barrel on Monday. It has been selling in the range of $70 and $90.

"Consumers and producers are unanimous that the oil at $70 - $90 prices are suitable prices and will not hurt the global economy," Mohammad Ali Khatibi, Iran's representative at the Organisation of Petroleum Exporting Countries (OPEC), told the oil ministry news agency SHANA.

"There are thoughts that increase in the price of oil up to $100 per barrel will not create problems for the market."

The International Energy Agency (IEA) said Friday that OPEC was increasing production fast enough to meet growing demand and cut compliance to the group's target output cuts.

Iran is the second largest oil producer in the world. OPEC members elected Iran as the organization's president for 2011.