U.S. Moves to Shed Light on "Dark Markets"-Government May Set Limits on Oil Speculators [View All]

[RamboLiberal]

Source: CBS News

It was a year ago this week that crude oil prices rocketed to a record $147 a barrel, sparking widespread outrage that speculators - like banks, hedge funds and investment giants - were behind the rise.

Ever since, the price of crude has been on a wild ride plunging as low as $34 a barrel in December before bouncing back to about $60 today.

This has fueled new concerns that - in the midst of economic turmoil - oil speculators are at it again, pumping an estimated $200 billion into the oil futures market in just the last year, reports CBS News chief investigative correspondent Armen Keteyian.

"I still think we have a lot of investment dollars flowing into dark markets," said Sen. Marcia Cantwell, D-Wash. "That is, oil being traded, energy futures being traded, on markets that aren't regulated."

In response, the Commodities Futures Trading Commission, which regulates oil and other commodities in the U.S., is dropping its historic hands-off approach. It is now considering tougher regulations that would make it harder for speculators to amass huge positions and make money timing the market.


Read more: http://www.cbsnews.com/stories/2009/07/08/cbsnews_investigates/main5145164.shtml?tag=stack

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