"Speculators, or more accurately financial investors, are no fools. Just as in any other financial market, so in the market for oil - they are a consequence and not a cause of the tight underlying situation," BP Plc chief economist Christof Ruhl told PTI.

India has maintained that crude prices above $60 per barrel were a result of excessive speculation in markets like NYMEX of New York.

"They (financial investors) invest where they see good opportunities and divest where they see demand falling short of supply and therefore expect prices to fall," Ruhl said.

When asked how much of the rally in crude oil prices could be attributed to a surge in demand from India, Ruhl said that India, like many other countries is contributing to the rise in demand for crude oil, with consumption levels clearly above the global average of 1.1 per cent.

India consumed 2.7 million barrels oil per day in 2007, making it the world's fourth-largest oil consumer after the US, China and Japan.

Globally, India's consumption is just 3.3 per cent, which consequently grew by 6.7 per cent, one of the fastest growth rates among the world's biggest 20 oil consumers.

He added that blaming "speculators" was like putting the cart in front of the horse and then flagellating it for not moving.

"Investors follow expectations, which are following real developments, and real production and consumption numbers," Ruhl said.  

World's top 10 consumers of oil