Qatar, the resources-rich nation, has added its voice to warnings that the price of oil will hit $200 a barrel despite record levels of production among Gulf countries last month.

Qatar's energy minister, Abdullah bin Hamad al-Attiyah's comments echoed those of Opec's president, Chakib Khelil, who said on Monday that economic factors could drive oil to $200.

The oil price reached nearly $120 at the start of the week and analysts are concerned that an influx of investment money from speculators could push it higher. The price eased to $115 today but is still up more than 20 per cent this year.

Prices have increased despite falling demand in the US and increased supply in the Gulf. The United Arab Emirates pumped its largest ever quantity of oil in February at 2.716 million barrels a day, up from 2.700 the month before. Kuwait and Qatar also pumped record amounts and Iran was at maximum output.

Saudi Arabia, the world's largest producer, also increased pumping to 9.216 million barrels a day in February, up from 9.205 the month before.

Despite increases in supply, the price of oil has continued to be driven up by "hot money" from investors. Investment funds have been seeking alternative stores of wealth to the weakening US dollar and Lehman Brothers, the investment bank, estimates that this has contributed an additional $20 to $30 to the price.

If investors continue to put money into oil the price could rocket, particularly if there are any disruptions to supply later in the year.

The Qatari energy minister, said: "Everything is possible depending on economic circumstances and the situation of the tumbling dollar. Oil is currently under the influence of many factors even though there is no shortage of supplies. Prices may or may not go up to $200."

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