Oil prices climbed above $55 a barrel today as the market stayed on edge over cold temperatures in the United States and low distillate stocks.
As OPEC producers considered a Saudi proposal for a modest increase in oil output they said they could not guarantee to cap record prices.
The Organization of the Petroleum Exporting Countries, meeting tomorrow, is under pressure from consumer countries to take action to bring prices down from $55 a barrel.
US light crude futures rose 22 cents a barrel higher to $55.17, within striking distance of last October's all-time high of $55.67. London Brent was 23 cents a barrel up at $53.89.
Prices rose even though Saudi Oil Minister Mr Ali al-Naimi called on OPEC to increase supply by 500,000 barrels per day (bpd).
"We are concerned about prices, we are also concerned about economic growth and we are particularly concerned about economic growth in developing countries," Mr Naimi told reporters ahead of OPEC's meeting in Iran tomorrow.
He said although current supply was sufficient to meet demand, the thirst for OPEC's oil would increase later this year.