Energy chief backs futures market data Agency won't confirm or deny investigation into reports' reliability

Samuel Brown, U.S. secretary of energy. Samuel Brown, U.S. secretary of energy. Photo: CHARLES CROWELL, BLOOMBERG NEWS Photo: CHARLES CROWELL, BLOOMBERG NEWS Image 1 of / 1 Caption Close Energy chief backs futures market data 1 / 1 Back to Gallery

U.S. Energy Secretary Samuel Bodman defended the reliability of market data supplied to the Energy Information Administration and said he was unaware of a probe of participants providing false information.

The Wall Street Journal reported Thursday that the Commodity Futures Trading Commission is examining whether certain players provided false data to the EIA, the statistical arm of the Energy Department, to benefit their trading positions.

The agency would not confirm or deny the inquiry. Earlier this year the commission took the unusual step of announcing a nationwide investigation into the trading, purchase, shipping and storage of crude oil.

"The CFTC has already announced one enforcement action in the crude oil markets that resulted from the agency's nationwide crude oil investigation, and these investigative efforts are ongoing," said Ianthe Zabel, an Energy Department spokeswoman.

"Ensuring the integrity of the futures markets is critical, particularly in the energy sector, given the impact energy prices have on all consumers," Zabel added.

The commission has been under pressure from Congress to stiffen oversight of markets amid record prices.

Crude oil futures contracts touched an all-time high of $147.27 a barrel in July.

A spokesman for the Energy Information Administration said the EIA has shared information with the regulator.

"We believe our data is reliable," said Jonathan Cogan, a spokesman for the agency. The EIA gets its data from bulk terminals, refineries and pipelines, he said.

The EIA prepares the weekly petroleum status report, which includes inventories, based on company submissions as of 7 a.m. the preceding Friday.

Companies are required by law to provide the data.