Oil has hit another record price in trading today, closing just a shade under $US60 a barrel.

Insatiable demand and a lack of refinery capacity are responsible. Oil industry expert Ray Holloway says one country is a particular problem: the United states of America, failing to solve the challenge of how to produce enough oil for its own needs.

Mr Holloway says Americans use around 40 percent of all the oil produced in the world every day.

New Zealand oil companies are closely monitoring the increase in crude prices.