TEHRAN (IRNA) — Managing director of the National Iranian Oil Company (NIOC) Gholam-Hossein Nozari said Sunday that it is logical to predict the average price of oil in the next year budget bill March 2007-March 2008 at $40 to 45 per barrel.

He told reporters that all oil transactions in international markets are in U.S. dollars but Iranian customers would pay in euros instead.

Asked whether or not the United Nations Resolution 1737 may create obstacles in the way of Iranian economic cooperation with other nations, he said that Iranian trade partners honor their commitments citing Iran-Malaysia cooperation in the oil industry adding that the Malaysian 'SKS Ventures' will go ahead with cooperation with Iran to the dismay of the United States.

Other foreign companies who sign agreement with the Islamic Republic of Iran are duty bound to act according to their terms of contracts to implement and finalize their projects, he said.