Skip to: Content
Skip to: Site Navigation
Skip to: Search

July 5, 2008 7:31:19 PM CDT

Learn about Newser Points »

Back to the grid

Congress Turns on Speculators in Oil Bubble

Posted May 15, 08 7:22 PM CDT in Politics,  Business    Editor's Choice

(Newser) – It’s not OPEC pulling oil prices to ever greater-heights—it’s speculators. That’s the theory behind the Consumer-First Energy Act, a bill sponsored by Senate Democrats aimed at clamping down on runaway oil futures trading. As stocks fall, investors are fleeing to commodities, especially oil. But even the US government might not have the power to rein in the market, BusinessWeek reports.

“We regulate the trading of onions much more closely than the trading of oil,” argues one consumer advocate. “Regulation will bring some discipline to this raw speculation.” Speculators could simply jump to less-regulated exchanges—if they're the problem at all, some note. “We do not think the energy crisis will be solved by finding and punishing the big, bad speculator,” wrote one Goldman Sachs analyst.

Source BusinessWeek

Editor Recommended

Related News

  • Speculators Didn't Do It

    9 minutes ago
    Speculators Didn't Do It Politicians are blaming high oil prices on an old scapegoat: speculators, writes Dean Barnett in the Weekly Standard. But if speculators were hoarding oil, it would be stockpiled, and inventories would soar. Instead, inventories remain constant. This is obvious "to anyone who took an introductory economics class," Barnett writes. "Demand is relatively high. That means higher prices." More »

  • As Prices Soar, Congress Aims at Speculators

    Jun 13, 08 8:30 AM CDT
    As Prices Soar, Congress Aims at Speculators Congress is blaming rampant commodity speculation for rocketing gas and food prices, and berating regulators for letting it happen, the New York Times reports. Unless watchdog groups like the Commodities Futures Trading Commision crack down, Carl Levin says, "we don’t have a cop on the beat.." Joe Lieberman has even introduced a bill to ban institutional investors from commodity markets. More »

  • Oil Tops $130

    May 21, 08 8:30 AM CDT
    Oil Tops $130 Oil set yet another record today, with prices hitting $130.47 a barrel in electronic trading in Asia and Europe, the AP reports, on supply concerns and renewed worries about the dollar. Crude closed at $128.98 in the last New York Mercantile Exchange session. Oil futures have roughly doubled over the past year. More »

  • Financials, $108 Oil Sink Stocks

    Mar 10, 08 3:49 PM CDT
    Financials, $108 Oil Sink Stocks US stocks fell today for a third consecutive day as fears of recession continued to spread, MarketWatch reports. With Ambac’s revival uncertain and Countrywide facing a possible securities fraud probe, shares of both financial giants plummeted, pressuring the overall market downward. The Dow lost 153.54 to close at 11,740.15, the Nasdaq dropped 43.15 to 2,169.34, and the S&P 500 fell 20.00 to 1,273.37. More »

  • Oil Hits $104; OPEC Won't Budge

    Mar 5, 08 3:57 PM CST
    Oil Hits $104; OPEC Won't Budge Crude oil rose to a record $104.52 a barrel today after OPEC decided to hold production steady. “The oil market is currently stable,” said Saudi Arabia’s oil minister. “There is no need to increase even one barrel of oil.” The cartel blamed sky-high prices on “tremendous speculation,” the Wall Street Journal reports. Oil futures were up $5 on the day. More »

Traders work the Crude Oil trading pit at the New York Mercantile Exchange Friday, May 9, 2008.   (AP Photo/David Karp)
A trading board is on display at the New York Mercantile Exchange on Monday, April 21, 2008 in New York.   (AP Photo/Jin Lee)
High gas prices posted at a Shell gas station in Redwood City, Calif., Wednesday, May 14, 2008, as a Toyota Prius hybrid drives by.   (AP Photo/Paul Sakuma)
prev    next
play

Threads (1 of 1)

Tags

oil prices  • oil  • commodities  • futures market  • speculation  • commodities exchange


Loading...

Loading...

Related Thread: Gas Gets Pumped Up

Next story from this section »

Today's Most Popular


Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »