Oil prices fell nearly a dollar on Tuesday after an all-time high above $60 the previous day. U.S. crude (CLc1) traded 94 cents lower at $59.60 a barrel having set a record $60.95 on Monday when the front-month contract closed above $60 for the first time since trading started in 1983. London Brent (LCOc1) dropped 88 cents to $58.42 a barrel after hitting a record $59.59 on Monday. A buying surge by speculative funds has pushed prices up almost by a third since May amid growing fears of a global strain on production and refining capacity, especially in the fourth quarter, when demand for heating oil peaks. "I think realisation has set in that this situation will not go away in a hurry. Apart from worries over Iran, there is the question of what OPEC can do to bring down prices; the answer is -- very little," said broker Rob Laughlin of Man Financial in London. "The only thing that can halt oil's rise is evidence it is damaging the global economy. So far we have not seen that." Oil demand in the United States and Asia has so far remained strong in the face of high fuel costs, encouraging traders to test the upper limits of what consumers will pay for. Higher costs may be creating obstacles for economic growth in many import-dependent countries but they have yet to derail a global expansion, economic officials say. "If it is sustained yes, it's a cause for concern. But we bear in mind that the world economy has been able to absorb the big rise in oil prices since 2001 without serious consequences for growth or inflation," European Central Bank Governor Nicholas Garganas said at a central bankers' meeting in Basel. U.S. Treasury Secretary John Snow said the oil price may take just a few tenths of a percentage points off economic growth but did not herald a recession.