The InterContinental Exchange (ICE), which operates global commodity and financial products marketplaces - including the world's leading electronic energy markets - has said it is cooperating with regulators in their effort to restrain speculation in oil trading. The Atlanta-based company, however, insists that speculation is not the reason for soaring oil prices.

With consumer patience beginning to wear thin at the galloping price of oil, trading in oil futures is beginning to come under attack from various sections of society - consumers, politicians and industry leaders – concerned that speculation is actually driving gasoline prices sky high.

ICE,  which operates a number of commodities trading exchanges, including a major oil futures exchange based in London, now finds itself caught in the cross fire.

In their testimony before US Senate panels, company executives said last week, and also Monday, that they did not believe that excessive speculation was responsible for the spike in prices. Warning against ''legislative interference" the company also said that it did not oppose new oversight of its London exchange, as part of an effort to keep a lid on trading that might affect the market.

"There is no evidence that regulators or researchers have found demonstrating that excessive speculation is driving crude oil prices," said Sarah Stashak, an ICE spokeswoman.

According to Stashak, supply and demand, along with a weak dollar and geopolitical concerns have spiked prices.

"Speculation should not be misconstrued as manipulation," Stashak said. "Speculators play a vital role in market dynamics."

So far, three reasons have been assigned for higher oil and gas prices - a supply/demand imbalance, the US dollar's devaluation and speculators driving up futures prices. Since the first two reasons are beyond short term control, it is speculative activity in the futures market that is now beginning to garner most of the attention from harried consumers and worried politicians.

Governments and regulators are now beginning to look for ways in which to control trading, which they perceive has gone too far.

The Commodities Futures Trading Commission (CFTC) recently announced rules to limit trading by any single speculator, even as it asked ICE to report more information about trading. ICE has promised to furnish the information that the agency wants.

The CFTC's stated 'mission' is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options.

ICE's London exchange is the forum for trading of futures in Brent crude, which is a benchmark for global prices. ICE officials say that the London exchange, which they bought in 2001, is already supervised by the British Financial Services Authority and so additional regulatory changes sought for will have no dramatic impact.

The company says it has the authority "to order a member to reduce the size of a position that it considers to be too large," as well as authority "to take disciplinary action against its own members." Those actions are not public but have been taken against some traders, Stashak said.

The CFTC now requires that the ICE set limits on traders' volume, and also, that it publish trading information on a daily basis. It is also required to provide a daily report on the positions held by large traders and report about positions above the limits it sets every three months.

These moves are designed to make trading a more transparent affair.