June 24 (Bloomberg) -- Crude oil reached $60 a barrel in New York for a second day on speculation supplies won't meet demand for gasoline, diesel and heating oil.

Crude oil for August delivery rose as much as 1 percent after a report showed crude oil imports to China, the world's second-largest user, rose 8.2 percent in May from a year earlier. The contract was at $59.76 in after-hours electronic trading on the New York Mercantile Exchange at 9:55 a.m. Singapore time.

The Organization of Petroleum Exporting Countries is pumping more oil to boost inventories in preparation for peak demand in the fourth quarter, leaving little margin for additional output if supplies are disrupted. The group, which produces about 40 percent of the world's oil, last week raised its demand forecast for the quarter by 0.2 percent.

``Everyday, the demand keeps on stable to growing from China, India,'' said Rehan Rashid, an analyst at Friedman Billings Ramsey & Co., in Arlington, Virginia. ``The price should stay right around these levels'' until there is evidence producers can raise their capacity to match, he said.

Yesterday, the August contract rose $1.33, or 2.3 percent, to $59.42 a barrel. Earlier, it touched $60 a barrel, the highest price for a contract closest to expiration since trading began on Nymex in 1983. Oil prices today are up 58 percent from a year ago.

China's crude oil imports in May rose to 10.4 million metric tons, the Beijing-based Customs General Administration of China said today. Imports in the first five months of the year rose 5.1 percent to 52.3 million tons, customs figures show.

U.S. Demand

Oil futures have gained 18 percent in the past month on concern U.S. refiners will strain to meet summer gasoline demand and store enough distillates for the northern hemisphere winter. The U.S., the world's biggest oil consumer, uses about 10 percent of the global supply to make gasoline.

Gasoline futures rose for the first time in four days yesterday. U.S. gasoline use fell 2.3 percent last week from a 22- month high, the country's Energy Department said June 22.

Demand for gasoline may rebound in next week's report, as supplies move from refineries to wholesalers for use during the U.S. Independence Day holiday on July 4, Peter Beutel, president of Cameron Hanover Inc., a New Canaan, Connecticut-based energy consultant, said in a note to clients yesterday.

``Markets will still keep a bullish bias at least until the July 4 weekend and possibly into the first part of July,'' said Phil Flynn, vice president of risk management at Alaron Trading Corp. in Chicago. ``Any little problem out there will cause the price to pop up.''

Gasoline for July delivery rose 4.42 cents, or 2.7 percent, to $1.6567 per gallon yesterday. It was at $1.6603 in after-hours trading.

Distillate Demand

U.S. demand for distillates, a category that includes heating oil and diesel, rose 6.9 percent in the four weeks ended June 17 compared with the year-earlier period, according to the Energy Department report.

The earlier-than-usual shift in production to heating oil from gasoline may cause stockpiles of gasoline to drop as U.S. demand from car and truck drivers peaks in the summer, the government said.

Heating oil for July delivery gained 5.3 cents, or 3.3 percent, to $1.6756 per gallon, the highest closing price since trading began in 1978. Prices reached an all-time high of $1.695 a gallon during trading on April 4. It was at $1.6840 in after- hours trading.

Heating oil serves as a proxy for diesel and jet fuel, which don't have futures contracts of their own. Prices are 64 percent higher than a year ago.

``The price of distillates is pulling up the price of crude,'' said Philip Verleger an economist and president of consultant PKVerleger LLC. Crude oil ``could conceivably go to $90 a barrel'' if demand remains high, Verleger said.

Virgin Refining

Sir Richard Branson, founder of Virgin Atlantic Airways Ltd., said he is considering building a refinery to help lower global fuel prices. ``There's an enormous shortage of oil refinery capacity,'' he said yesterday. ``Airlines are going to have to adapt to a new world.''

Virgin Atlantic may spend an extra 60 million pounds ($109 million) on fuel this year, Steve Ridgway, chief executive of the airline company, said in an interview June 22. Increases in distillate prices, which include kerosene, pull up the price of jet fuels.

U.S. airlines carried 5.5 percent more passengers in May than a year ago, according to an Air Transport Association report yesterday. Air travel measured by passenger numbers and distance flown, was up 7.2 percent from a year earlier.

To contact the reporters on this story: Gavin Evans in Wellington, New Zealand at gavinevans@bloomberg.net Matt Nesto in New York mnesto@bloomberg.net.

Last Updated: June 23, 2005 22:02 EDT