WASHINGTON - Energy Secretary Sam Bodman said on Wednesday a record surge and the following retreat in crude prices this week was not driven by supply and demand factors.
"It was clearly not a fundamental where the value of a barrel of oil dropped by $20 or so between 5 o'clock the night before and the next morning," Bodman told reporters following a speech at Gridweek, a conference of industry and government leaders focused on the future of the nation's energy grid.
The expiring October U.S. crude oil contract soared $16.37 to $120.92 a barrel Monday. On Tuesday, however, November crude settled at $106.61.
Bodman told reporters he believed the incident was an anomaly, most likely caused by a short squeeze by professional traders.
The Commodity Futures Trading Commission said Monday that it was reviewing the historic jump in crude oil prices to ensure that no illegal activity had taken place.
Bodman said he supported the commission's review.
"It was clearly not a fundamental where the value of a barrel of oil dropped by $20 or so between 5 o'clock the night before and the next morning," Bodman told reporters following a speech at Gridweek, a conference of industry and government leaders focused on the future of the nation's energy grid.
The expiring October U.S. crude oil contract soared $16.37 to $120.92 a barrel Monday. On Tuesday, however, November crude settled at $106.61.
Bodman told reporters he believed the incident was an anomaly, most likely caused by a short squeeze by professional traders.
The Commodity Futures Trading Commission said Monday that it was reviewing the historic jump in crude oil prices to ensure that no illegal activity had taken place.
Bodman said he supported the commission's review.
