Oil Speculators' Conspiracy?

[pioneer]

BBC Online News

US regulators have announced plans to impose limits on oil trades overseas.

The US Commodity Futures Trading Commission said the London-based electronic exchange would have to comply with US rules.

The move comes as oil prices notch up record highs, amid fears that speculators are distorting the market.

As a result, fuel costs have shot up hitting the global economy. Airlines have been hit badly, with near record losses expected for 2008 in the US.

US airlines were forecast to report $10bn (£5bn) of losses this financial year as sky-high fuel costs erode profits, according to the industry group Air Transport Association (ATA).

Oil prices slipped from their record highs near $140 a barrel reached during Monday trade as investors were cautious ahead of plans by Saudi Arabia to increase production in July.

US sweet, light crude finished down 60 cents at $134.01, while London Brent settled 99 cents lower at $133.72.