Malaysia prefers more stable petroleum prices because volatility is disruptive to the world economy, Trade Minister Rafidah Aziz said today.

"We want stable oil prices, not one that shoots up to the ceiling and then falls again," Rafidah told journalists on the sidelines of a Singapore-Malaysia business seminar.

"Volatility is not it," she said. "It should be stable at reasonable prices because the world (economy) will be disrupted, you know."

Oil prices hit new record highs Monday, crossing past US$70 a barrel as powerful Hurricane Katrina threatened the crude-producing Gulf of Mexico region in the United States.

Prices later eased below US$70 but some economists feared that 80 dollars, even 100 dollars could now be in the realm of possibility.

Last month, Malaysia's state-owned energy firm Petronas said it was on track for another record profit result in the current financial year to March 2006 if crude prices remain high.

Petronas' net profits rose 50.3 percent in the year to March 2005 to a record RM35.56 billion.

Petronas is the only Malaysian company to be listed in the Fortune Global 500 list of the world's biggest firms.