Supply, demand explain oil prices, regulators say

NEW YORK (CNN) - Fundamental supply and demand factors best explain the increases in crude oil prices in the last five years, a federal task force formed last month to examine the sharp run-up has concluded in a preliminary report.

The interagency task force led by the Commodity Futures Trading Commission (CFTC) - the presidentially-appointed commission that regulates commodity and futures markets - said Tuesday its analysis to date found no evidence that speculators have systematically driven changes in oil prices between January 2003 and June 2008.

Large price increases have occurred because of rise in demand for oil, particularly from emerging market countries - according to the report - and sluggish supply compounded by production shortfalls associated with geopolitical unrest in countries with large oil reserves.