MF Global's Kilduff sees oil at $100 by year-end

NEW YORK, Oct 16 (Reuters) - MF Global's energy risk management group headed by John Kilduff said Tuesday it expected oil prices to hit $100 per barrel by the end of the year.

The group cited continued economic growth that appears to show oil demand increasing despite rising prices and rising geopolitical tensions triggered by the Turkish government's decision to seek parliamentary approval to strike at Kurdish separatist rebels in northern Iraq.

"A weaker (U.S. dollar) and an IMF official suggesting the dollar had room to move even lower also seems to be funneling more buying by speculative interests into the oil market," wrote Mike Fitzpatrick, a member of Kilduff's team, in his morning market outlook Tuesday.

Crude oil prices surged to a record above $87 per barrel in overnight trading Tuesday amid strong buying demand from investment funds.

"We've been moving back towards the bullish side of the ledger recently," said Kilduff in a telephone interview.

"This is a new call."

Oil analysts have been ratcheting their price forecasts higher in recent weeks amid evidence that marginal oil production costs have risen sharply and on expectations of continued strong demand.