LONDON — The rising price of crude oil reflects increased U.S. consumption as well as speculation by investors, a report said.

"The use of commodities as a hedge against the spectre of resurgent inflation and a weakening dollar will perpetuate the incentive to build inventory, squeeze the prompt market and risk a difficult-to-break vicious circle of upwardly spiralling prices," the agency said.

In June, crude oil exceeded $72 per barrel amid predictions that the price could reach $150 in 2010. The agency said prices could be fueled by the summer driving season in the United States.  

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