Gasoline demand could boost oil prices: Iran

The oil market could get a boost from rising gasoline consumption, which is pushing up the international price of the fuel, Iran's Opec governor was quoted as saying on Saturday.

"Market information indicates the price of gasoline in international markets is on the way up. The growth in the consumption of gasoline in the first half of the year is the most important reason for the hike," said Mohammad Ali Khatibi.

If gasoline prices rise more than expected in the first six months of 2010, it could serve as an impetus for higher oil prices, ILNA news agency cited Khatibi as saying.

Iran, the world's fifth-largest oil exporter, is traditionally a price hawk within the Organization of the Petroleum Exporting Countries. As it lacks sufficient refining capacity, it is also a big gasoline importer. On Friday, European gasoline prices fell below $800 a tonne following sharp falls in US RBOB gasoline futures.

Doubts about the strength of demand in the United States have surfaced, with imports falling and refineries ramping up activity last week.