Oil prices soar past $60 in Asian trading

SINGAPORE, Monday (AFP) - World oil prices soared past the psychological barrier of 60 dollars in Asian trading on Monday, with the benchmark New York contract hitting a record high of 60.45 dollars a barrel.

At 9:25 am (0125 GMT) New York's main contract, light sweet crude for delivery in August, was at 60.30 dollars a barrel, up 46 cents from the all-time closing high of 59.84 in the United States on Friday.

The contract hit 60.45 dollars earlier on Monday. It had touched 60 dollars for the first time during New York trading on Thursday.

Prices are hitting record peaks as speculators cash in on fears that refineries will struggle to turn enough crude oil into heating fuel to meet fourth-quarter demand amid the onset of the northern hemisphere winter.

Analysts say that US refineries are operating at around 95 percent of capacity, mainly to meet demand for gasoline, or petrol. And the market has generally ignored promises from the Organisation of Petroleum Producing Countries to increase output if necessary.

Meanwhile Finance ministers from Asia and Europe called on Sunday for increased production to curb the rising cost of oil, which they said poses a risk to world economic growth.

"Continued high and volatile oil prices pose a risk to global growth, including to oil-dependent emerging and developing economies," said a chairman's statement adopted at the Asia-Europe Meeting of finance ministers.

"Ministers called for increased production by the oil-producing countries, improved provision of data on oil production, demand and stocks, and a climate conducive to oil investment throughout the supply chain."

The ministers from 38 Asian and European countries, meeting in the northern city of Tianjin, also stressed the importance of investing in new capacity, conserving energy and developing alternative fuels.