Oil prices rose to touch $60 for a second day today, extending a streak of record highs that have yet to curb robust US energy demand.
US crude futures traded up 10 cents to $59.50 a barrel, having touched $60 to match yesterday's record - the highest since the New York Mercantile Exchange began trading it in 1983.
London Brent crude rose 7 cents to $58.03 a barrel. Rapidly rising consumption in the United States, the world's biggest consumer, threatens to strain oil supplies and refining capacity when demand peaks this winter.
The potential for a fourth quarter supply crunch has prompted hedge funds and speculators to bet on a push to new records, traders said.
"The big message this week was that demand is still staying strong in the face of high oil prices," said Tony Nunan, manager at Mitsubishi Corp.'s international petroleum business in Tokyo.
Oil at $60 equates to a gain of about 38 per cent since the start of the year.
But analysts said sky-high prices have yet to seriously dent global demand, leaving the global supply chain with little spare to deal with any unexpected disruption.
US government data on Wednesday showed a fall last week in crude oil stockpiles as refineries worked at close to full throttle to meet soaring demand. Distillate demand is just under 7 per cent higher than a year ago, while gasoline demand is running 2.5 per cent higher.
Members of the Organization of Petroleum Exporting Countries (OPEC) are already running near maximum capacity and say they are powerless to stem crude's rally.
Saudi Oil Minister Ali al-Naimi has said the kingdom, the world's biggest exporter, is able to lift output but that there was no demand for extra crude from the world market due to bottlenecks in the global refining system.