(AFP) – Jul 1, 2008

SINGAPORE (AFP) — World oil traded higher in Asia near record levels Wednesday after OPEC's president talked of uncertainty surrounding future investment in energy facilities to boost crude output.

In afternoon trade, New York's main oil futures contract, light sweet crude for August delivery, was 1.33 dollars higher at 142.30 dollars a barrel from a record close of 140.97 dollars on Tuesday at the New York Mercantile Exchange.

Brent North Sea oil for August delivery was 1.51 dollars higher at 142.18 dollars after an all-time settlement high of 140.67 dollars in London Tuesday.

On Monday both contracts reached historic intra-day highs, 143.67 dollars for the New York contract and 143.91 dollars for Brent.

OPEC president Chakib Khelil, speaking at a conference in Madrid, said the oil producers' cartel was concerned about future demand.

"The concern we have is about the security of demand," Khelil, who is also Algeria's energy minister, told delegates at the World Petroleum Congress.

He said there were "big uncertainties" about making huge investments in energy infrastructure to increase output from the 13 OPEC member countries, which currently pump about 40 percent of world oil.

Concerns over geopolitical tension in the Middle East, the slumping US dollar and unrest in major African crude producer Nigeria are all helping to support prices, dealers said.

"They are talking about the usual stuff like the weak dollar, Iran and Nigeria," said Clarence Chu, a trader with Hudson Capital Group, a New York-based energy trading house.

"I would say people are still leaning towards the bullish side but they are looking for new news," he said, adding the release later Wednesday of the weekly US energy data report may provide direction for the market.

A survey by energy information provider Platts showed analysts are expecting a drawdown of 1.2 million barrels in weekly US crude oil stocks when the Department of Energy (DoE) releases its energy reserves snapshot.

The DoE's report last week showed crude stockpiles unexpectedly climbed by 800,000 barrels to 301.8 million in the week ended June 20.

Global oil prices have doubled in the past year and have risen by more than 40 percent since the start of 2008 when they breached 100 dollars for the first time, triggering fears over inflation and slower economic growth.

Protests against the soaring prices have also broken out around the world.

Consumer countries blame record prices on tight supplies amid strong demand and worries about supply from countries such as Iran, Iraq and Nigeria.

In particular, they accuse the Organisation of the Petroleum Exporting Countries (OPEC) of not producing enough crude.

Khelil has said the fault lies with a weak US currency, which has helped draw investor interest to crude oil.

Indonesian President Susilo Bambang Yudhoyono on Wednesday pleaded for oil powers and consumer nations to join forces to calm the raging oil market.

"This is time for producer countries, not only OPEC and Saudi Arabia but also Russia and Venezuela, to sit together with consumer nations, with the US, China, India, and not to blame each other," Yudhoyono said in a speech.

"They need to make calculations about to what extent they can step up their production. If it's not possible they have to commit to reduce oil consumption."

The International Energy Agency (IEA) gave early warning on Tuesday of looming crude oil supply tension from 2010, offering scant encouragement for consumers struggling with rising fuel prices.

IEA, energy policy adviser to major industrialised countries, stressed in a report on medium-term prospects for the oil market that growth in supply would outpace demand in the next few years before pressures built up again from 2010.

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