Congress going after speculative energy trading - Reuters

[Eugene]

Source: Reuters

Congress going after speculative energy trading
Fri Jul 13, 2007 6:14PM EDT

By Tom Doggett - Analysis

WASHINGTON (Reuters) - Hedge funds and other speculators
buying and selling energy commodities like natural gas and oil
were hit this week by renewed attacks from U.S. lawmakers,
who say they are controlling supplies and pushing up prices.

The latest salvo from Capitol Hill was a bill giving the
government more say in unregulated energy markets, requiring
traders that hold large positions in natural gas to report that
information to the Commodity Futures Trading Commission.

Rep. Sam Graves, a co-sponsor of the bill, claimed that,
despite high U.S. natural gas inventories and strong production,
gas prices have been extremely volatile and subject to spikes
because of increased speculative trading.

-snip-

He was not the only one with that opinion.

-snip-

The CFTC's acting chairman, Walter Lukken, told Congress this
week the agency was investigating "evidence of manipulation" in
U.S. energy markets involving about 100 individuals and entities.

-snip-

Read more: http://www.reuters.com/article/reutersEdge/idUSN1325477620070713

[OnceUponTimeOnTheNet]

1. Levin is also pushing a similar bill.

From same article.
<<"Right now, U.S. energy markets are dangerously vulnerable to price manipulation and excessive speculation," said Sen. Carl Levin, a Michigan Democrat, who was pushing a separate bill to give the CFTC more oversight of energy trading.>>

My congressman Stupak also is trying to check the Speculators.


http://www.house.gov/stupak/issues_gasprices.shtml
c&p
I have also re-introduced the Prevent Unfair Manipulation of Prices (PUMP) Act, (H.R. 594), to bring OTC trading under the oversight of the government. This increased oversight and transparency would improve confidence in the market and help eliminate the unreasonable speculation in crude oil prices. My legislation would also increase penalties for speculators found to be unfairly manipulating the oil futures market. It is estimated that oversight over all futures trades would lower the price of a barrel of crude oil by as much as $20.

The Department of Energy says that gas costs are based directly on the price of a barrel of oil. Therefore, between my price gouging legislation and my legislation to bring oversight to over-the-counter trading, the price of a gallon of gas could be reduced by approximately one dollar. I will continue to work with my colleagues in Congress to pass my legislation.