Experts To Congress: Iran Sanctions Fuel High Gasoline Prices [View all]
Source: Dow Jones Newswires
By Tennille Tracy, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The head of the U.S. Energy Information Administration joined a panel of energy experts Thursday in dismissing the idea that a "quick fix" could reduce U.S. gasoline prices, saying instead that rising demand for oil around the world and supply concerns stemming from Iran sanctions are driving prices at the pump.
EIA Acting Administrator Howard Gruenspecht, speaking at a Senate hearing on gasoline prices, said many experts believe these trends will continue "and that's really a combination that affecting the market."
Gruenspecht and a panel of other experts also downplayed the role of speculative trading in the oil markets--an issue that Democrats increasingly point to as a cause for crude-oil price spikes. Gruenspecht said it was unclear whether profit-driven oil traders were pushing up prices, while Barclays Capital Managing Director Paul Horsnell said they played no role at all.
The idea that speculative traders are making oil more expensive is a "minority view," Horsnell said. "And I think it's an incorrect view based on faulty analysis."