EIA Says High Oil Prices not due to Hedge Funds, Traders

WASHINGTON, March 16 – (Reuters) – As U.S. crude oil prices soared past $56 a barrel to an all-time high on Wednesday, the government said that hedge funds and speculative traders were not to blame for rising crude costs.

The Energy Information Administration said in its weekly review of the oil market that even though inventory levels for U.S. crude and gasoline are at or above their historical average, the growth in oil demand, especially in China and the United States, and limited spare refinery capacity are responsible for current high oil prices.
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