G8 discusses blocking oil market speculation: Italy

L'AQUILA, Italy (Reuters) - The G8 nations have asked international bodies to study ways of intervening in oil markets to block speculation, Italian Prime Minister Silvio Berlusconi said on Friday.

"We also expressed our disapproval over the resumption of speculation internationally. Despite oil consumption falling 1 percent from last year, oil prices have risen from $30 a barrel to $70 a barrel," Berlusconi told a news conference, where he also cited higher prices of cereals and grains.

"We have talked to international financial institutions, the IMF, the World Bank, the OECD; giving them the mandate to study how to intervene to block this speculation that is being driven by hedge funds."

U.S. crude oil futures fell more than $1 a barrel toward $59 on Friday, and were poised for their biggest weekly fall since January on uncertainty about economic recovery.

(Writing by Deepa Babington; editing by Elizabeth Piper)