Oil prices hit a new record above $60 a barrel today, driven by the resilience of energy demand in the face of high fuel costs and worries about oil policy under Iran's new hardline president.
A short time ago New York's crude for August delivery climbed 66 cents to 60.50 dollars a barrel. In London, Brent North Sea crude gained 1 dollar 23 cents to a record 59.89.
Prices are striking fresh records amid continued 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.
Central bankers, meeting in Basel this weekend, said expectations were for oil prices to remain high for some time to come.
'There was a general consensus that we will have high oil prices for at least the next two or three years', said Martin Redrado, Argentina's central bank governor.
New York futures touched the symbolic high point of $60 for the first time on Thursday.
Meanwhile, traders were keeping an eye on developments in Iran, the second biggest member of OPEC, amid an election win for the ultra-conservative president elect Mahmood Ahmadinejad on Sunday.
Ahmadinejad said he would flush out corruption from the country's oil sector and favour domestic investors, although analysts do not expect a big shift in production policy.
Held back by US sanctions, OPEC member Iran has struggled to lift output capacity in the world's fourth biggest producer.
