With world oil prices climbing to a new closing high Friday, the issue topped the agenda of discussions at the Asia-Europe Meeting (ASEM) of finance ministers in this northern Chinese city.

"What we are calling for is one, stable oil prices," Mitja Mavko, an official of the Slovenian finance ministry, told reporters. "We (also) want to avoid volatility."

Mavko said he expected to see a call for oil producing countries to increase production levels in a final communique to be issued after the meeting Sunday.

"The only way to achieve (lower oil prices) is to increase production. I think they should," said Rastislav Sulla, counsellor with the embassy of Slovakia.

Oil prices climbed to a new closing high Friday just short of the 60-dollar mark in the face of projections about robust demand from China and the United States.

Countries fear continuing oil price rises will affect economic growth and fuel inflation.

The need to develop alternative sources of energy will also be under discussion, Mavko said.

While China's controversial yuan peg to the dollar is on the Japanese and some European delegates' minds, it is not on the formal agenda and will not be included in the joint communique, said delegates.

European countries appear to be trying to avoid provoking China at the meeting, as Beijing has staunchly argued that whether and when it adjusts the yuan's peg to the dollar is solely for China to decide.

"Obviously it's an issue, but it's not the principal issue (at the meeting)," said Des Browne, chief secretary to the British treasury.

"We have a very important program of cooperation to discuss."

The yuan, tied to the dollar for the past decade at around 8.28, is widely seen, especially by Washington, as being undervalued.

China has been under heavy pressure from the United States and Europe to ease the peg, which US and European officials contend gives Chinese exporters an unfair competitive advantage.