Oil, Gas Market Speculation May Face Restrictions

[Godhumor]

Source: Bloomberg

U.S. regulators say they may clamp down on oil and gas price speculators by limiting the holdings of energy futures traders, including index and exchange-traded funds.

The Commodity Futures Trading Commission will hold hearings this month and next to explore the need for government-imposed restrictions on speculative trading in oil, gas and other energy markets, Chairman Gary Gensler said today in a statement.

The hearings come amid increased scrutiny of the impact of speculators on oil prices. Senator Bernie Sanders, a Vermont independent, and Representative Bart Stupak, a Michigan Democrat, blame speculators for last year’s surge in crude-oil prices to a record $147.27 a barrel and called for CFTC action to avert a repeat. Oil has climbed 41 percent this year in New York trading, while demand has dropped and inventories climbed.

“Our first hearing will focus on whether federal speculative limits should be set by the CFTC to all commodities of finite supply, in particular energy commodities, such as crude oil, heating oil, natural gas, gasoline and other energy products,” Gensler said in the statement. “This will include a careful review of the appropriateness of exemptions from these limits for various types of market participants.”


Read more: http://bloomberg.com/apps/news?pid=20601087&sid=aIEgmYChpWg8

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We'll see how this turns out, but I'm happy that speculation is at least being looked at.

[redqueen]

1. It's about time.

[zbdent]

2. think this would have happened under McCain?

nope ...

[Lone_Star_Dem]

3. Perhaps they'll actually do something about the issue

I'm not getting all excited until I see the final outcome however.

[fasttense]

4. May, might, would if they could, hope to, want to, should,

but never will cause the billionaires have got all our money and power.

[ebbie15644]

5. We all know who will

kill it....Lobyists

[pattmarty]

6. Well, maybe we'll get some minor law to restrict it a little better than before.

I think that's the best we can hope for. Until the Democratic party gets more politicians to run for office like Bernie Sanders (I know he's an independent), then this is the "best we can get". We are indeed the party of Republican lite. We got a watered down energy/environmental bill, we'll probably get a "shit" healthcare bill, the EFCA will get lukewarm words from Obama and will get shot down in the Senate. So what do progressives/liberals have to show for having Dem controlled house and senate, plus a Dem President? Not a fucking lot, really. Look at the Republicans after W was elected. They all stood together solid like good Nazis. At this stage I believe we have to start electing more progressive candidates in the primaries so the needed things can get passed.

[sarcasmo]

7. The #1 Senator Bernie Sanders, go get them Bernie.