Democrats are urging the Obama administration to take swift action to reduce speculative trading in the oil markets as crude prices hover around $107 a barrel and gasoline climbs to about $3.80 a gallon.
Democrats are urging the Obama administration to take swift action to
reduce speculative trading in the oil markets as crude prices hover around $107
a barrel and gasoline climbs to about $3.80 a gallon.
In a letter to the Commodity Futures Trading Commission on Monday, nearly 70
House and Senate lawmakers pressed the commission to enforce caps on
speculative trading adopted in October under the Dodd-Frank financial reform
law. The lawmakers said in their letter that it was irresponsible to delay
enforcement in light of rising energy costs.
"We have a responsibility to ensure that the price of oil is no longer
allowed to be driven up by the same Wall Street speculators who caused the
devastating recession that working families are now experiencing," said
the lawmakers, led by Sen. Bernie Sanders (I., Vt.), a vocal critic of
speculative trading in the oil markets.
"We look forward to responding to the letter from Sen. Sanders," CFTC
spokesman David Gary said.
The lawmakers' rebuke to the CFTC is part of a time-honored tradition in
Washington
,
whereby lawmakers and lobbyists push harder for long-held energy goals when oil
prices rise. Democrats renew calls for limits on speculative trading,
investments in clean energy projects and a repeal of tax breaks for big oil
companies. Republicans, meanwhile, press for more domestic drilling and have
started recently to call for approval of the Keystone XL oil pipeline.
Facing high gas prices during a re-election campaign, President Barack Obama
has downplayed the need and effectiveness of short-term solutions. During
recent speeches on energy policy, Obama has conveyed the idea that oil prices
are determined by global forces that develop over several years.
The role of speculative traders in the oil markets has been debated for several
years. In 2008, when crude prices spiked to $147 a barrel, lawmakers said Wall
Street traders were inflating the prices for their own personal gain. Some
energy experts counter that speculative traders have no real impact on global
energy prices.
Position limits on speculative trading were passed by the CFTC in October, but
enforcement has been delayed because of lingering questions over swaps, a
complex financial instrument.
Διαβάστε ακόμα
Τρι, 24 Σεπτεμβρίου 2024 - 19:58
Τρι, 24 Σεπτεμβρίου 2024 - 19:54
Τετ, 18 Σεπτεμβρίου 2024 - 18:32
Τετ, 18 Σεπτεμβρίου 2024 - 18:27
Τρι, 17 Σεπτεμβρίου 2024 - 20:01