The Commodity Futures Trading Commission said on Tuesday that a government interagency task force has found that the huge jump in oil prices is due to "supply and demand factors" and that speculators are not to blame for high fuel costs. In its interim report, the task force said "preliminary analysis to date does not support the proposition that speculative activity has systematically driven changes in oil prices." The world economy has expanded at its fastest pace in decades, especially in developing countries like China and India, which has led to substantial increases in oil demand, according to the task force.The task force's findings counter many Democratic lawmakers and some energy experts, who argue that the billions of dollars invested in energy markets by hedge funds, pension funds and other speculators have pushed up oil prices.   more »

A downdraft in the Indian stock market is hammering returns for a hedge fund operated by Boston-based Venus Capital Management, reflecting the challenges of investing in volatile emerging markets. The Venus Special Situations Fund, a $100 million long-short hedge fund focused only on India, is down 22.25 percent in the first half, according to a July 15 investor note obtained by Reuters. The performance of the fund comes amid a sharp fall this year in Indian stocks, with the S&P CNX Nifty index of 50 stocks down nearly 40 percent in dollar terms through June. Vic Mehrotra, CEO and founder of Venus Capital, said he is positioning the portfolio for more market declines this year in India, where investors are worried about higher oil prices, inflation and political turmoil.   more »