Bodman Says High Oil Price Caused by Low Supply

(Bloomberg) — Tight world oil supplies, not speculators, are driving up the price of oil to record levels, U.S. Energy Secretary Samuel Bodman said in an interview on Bloomberg Television today.

Bodman said the U.S. and the Organization of Petroleum Exporting Countries have different views on speculation.

…Bodman also said that increasing ethanol output to alleviate fuel supply constraints justifies higher hog and chicken feed prices. Rising feed prices are “nowhere near as important as trying to relieve pressure” on supplies, he said.

Earlier today Bodman said in an interview on CNBC the escalating oil price should be expected.

Bloomberg