Italy in bid to deter speculators and keep oil from reaching $200

ITALY proposed increasing margin requirements on futures markets to deter speculative buying of oil, which Prime Minister Silvio Berlusconi said could reach $200 a barrel.

Oil retreated to around $143 a barrel yesterday, taking a pause from a record-breaking rally that lifted prices to a record $145.85 last week, up almost 50% this year.

Most analysts attribute the spike to supply shortages, increased demand and a weaker dollar — the currency in which most oil is traded — but Berlusconi said speculative bets on the futures market were also a factor.