March 5 (Bloomberg) -- Tight world oil supplies, not speculators, are driving up the price of oil to record levels, U.S. Energy Secretary Samuel Bodman said in an interview on Bloomberg Television today.

Bodman said the U.S. and the Organization of Petroleum Exporting Countries have different views on speculation.

``They see speculation in the market, I see a decline in global inventories,'' Bodman said.

Crude oil futures traded in New York rose to a record $104.56 a barrel today, the highest since trading began in 1983. Crude-oil supplies fell 3.06 million barrels to 305.4 million in the week ended Feb. 29, according to the Energy Department today.

Crude oil climbed above $104 a barrel after OPEC gave no indication it will increase production. OPEC agreed to maintain production targets at a meeting today in Vienna.

Exxon Mobil Corp., which recorded the biggest profit for a U.S. company last year, said today it will increase capital spending this year on exploration and other production activities by 21 percent to more than $25 billion. Exxon Mobil is the world's largest oil company.

Bodman also said that increasing ethanol output to alleviate fuel supply constraints justifies higher hog and chicken feed prices. Rising feed prices are ``nowhere near as important as trying to relieve pressure'' on supplies, he said.

Earlier today Bodman said in an interview on CNBC the escalating oil price should be expected.

``I don't think this is a big surprise that we've had a jump in price when there has been a decrease in crude inventories,'' he said.

To contact the reporters on this story: Michael McKee in New York at 1834; or mmckee@bloomberg.net; or Deirdre Bolton in New York dbolton@bloomberg.net

Last Updated: March 5, 2008 13:45 EST