Kuwaiti oil experts have cautioned against further oil price increases, fearing such hikes would endanger the world economy, the Kuwait News Agency (KUNA) reported Monday.

The experts stressed that the rate of worldwide economic growth was 5 percent in 2004 but is bound to drop to around 4 percent this year.

"This is an important pointer to the impact of the oil price increases on the worldwide economic growth," one expert was quoted as saying, adding the impact was "slow, but would be perceived in two years."

The experts said Hurricane Katrina and speculation in the oil futures market were two main driving forces behind the current price hike, not the shortage in the supply market.

Therefore, "maintaining stability in the oil prices is of utmost importance to both consumer and producing nations," they said.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) said it would mull an output increase to dampen the soaring price.

Oil futures on the New York Mercantile Exchange soared to 70.8 dollars a barrel on Monday, beating the previous record of 68 dollars set last week.

The price hike came after producers and refiners shut down operations ahead of Hurricane Katrina, which is measured as one of the strongest storms ever to threaten the United States.

Source: Xinhua