Asia and US seriously concerned over oil spike

India joined the US, Japan, China and South Korea to voice "serious concern" today about a record spike in oil prices but vowed to keep scaling back politically sensitive fuel subsidies.

Oil prices, which have soared five-fold since 2003, posted their highest ever one-day gain of $10.75 to close at a new record of $138.54 in New York after hawkish remarks by an Israeli official on oil producer Iran.

Senior officials from the United States, and Asia's four largest powers said in a joint statement after talks in Aomori, Japan that they "share serious concerns" about the current level of oil prices.

"These prices are unprecedented and against the interest of both consuming and producing countries. They pose a great burden — particularly on resource-scarce developing countries," it said.

US Energy Secretary Samuel Bodman warned oil producers that it would do them no good if the US economy took a hit.

"It's not good for producing nations to see US struggling economically (as) they depend on us to be a significant engine in world economic activity," Bodman told reporters.

Despite political sensitivity, the joint statement called for a scaling down of fuel subsidies, saying it would "enhance energy efficiency" and lead to investment in alternative energy.

Developing economies tend to heavily subsidise fuel costs in a bid to ease the burden on the poorest members of society.

India and Indonesia have recently been forced to hike prices amid soaring global crude oil costs, triggering large anti-government demonstrations in the two countries.