Oil prices scaled fresh highs today, forcing OPEC to consider a second output increase just a day after its deal to raise supplies failed to halt crude's record-breaking advance.
US light crude broke above $57 for the first time, gaining $1.04 to $57.50 a barrel. London's Brent crude, benchmark for European imports, rose $1.12 to a record $56 a barrel.
"It's not in our hands, prices are determined by the market," said UAE Oil Minister Mohamed al-Hamli.
Opec agreed yesterday to raise output by 500,000 barrels per day with immediate effect. The agreement allows the addition of a further 500,000 bpd if prices do not fall below $55 for U.S. crude.
With its output already near a 25-year high, OPEC is stretched to meet rising demand, encouraging the investment community to bet that oil's bull run can go further.
Mainstream investors are diversifying into energy and commodities markets, driving US crude on average to $49.16 so far this year, up $7.70 from 2004's average and $18 higher than the mean for 2003.
The rising oil price is not as big an inflationary threat as previously feared as non-dollar economies are insulated from some of the rise in US dollar-denominated oil prices by the weakening of the US currency.
Unrelenting demand growth from China is fuelling economic strength in other emerging Asian economies, while the US so far is absorbing higher fuel costs.
Opec has urged big non-OPEC suppliers, also including Russia and Mexico, to also raise production.