Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, NOVEMBER 22, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


7

Feds Consider Limits on Oil, Energy Speculation

Commodity Commission to hold hearings on 'purely financial' energy futures trading

Share

(Newser) – Federal regulators may impose new limits on the amount of energy-futures contracts that speculators can buy, the New York Times reports, an attempt to curb severe price fluctuations in commodities like oil and natural gas. Oil prices swung from $145 per barrel last summer to $33 in December, movement some attribute to purely financial investors who bet on the direction of price movements.

Gary Gensler, new chair of the Commodity Futures Trading Commission, estimates that such “non-commercial” oil futures buyers made up one-fifth of all trading activity in June. Gensler points out that such speculation on agricultural products like wheat and corn is already limited. The discrepancy between the rules for agricultural and energy futures “deserves thoughtful review” Gensler said.

This 2007 photo provided by Shell Exploration & Production Company shows the Frontier Discoverer drilling rig as it sits in Dutch Harbor, Alaska.
This 2007 photo provided by Shell Exploration & Production Company shows the Frontier Discoverer drilling rig as it sits in Dutch Harbor, Alaska.   (AP Photo)
US Commodity Futures Trading Commission Chairman Gary Gensler testifies on Capitol Hill, June 22, 2009.
US Commodity Futures Trading Commission Chairman Gary Gensler testifies on Capitol Hill, June 22, 2009.   (AP Photo)
An oil rig is seen at sunset in the desert oil field of Sakhir, Bahrain, May 29, 2009.
An oil rig is seen at sunset in the desert oil field of Sakhir, Bahrain, May 29, 2009.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow

My firm belief is that we must aggressively use all existing authorities to ensure market integrity.
- Gary Gensler, chairman of the Commodity Futures Trading Commission

« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.20.09
The Health-Care Wars Have Just Begun
11.19.09
Sarah Palin Deserves Some More Attention
7 comments
VIEWING:
 
tameesha_sharpton
Jul 7, 09 3:14 PM CDT
The discrepancy between the rules for agricultural and energy futures “deserves thoughtful review” Gensler said. ARE YOU KIDDING ? REVIEW ? GET THESE MAGGOTS OUT OF ENERGY FUTURES Reply
Vote up! Vote down!
+4
IN RESPONSE:
Newser001
Jul 7, 09 7:56 PM CDT
I've been crying about this to everyone of my Reps for years. Do yah think they might be listening...?
Vote up! Vote down!
+2
JonmarkP
Jul 7, 09 3:14 PM CDT
Let the speculators run wild - just put a sales tax all stock market transactions. We could fund the best healthcare in the world, the best infrastructure, the best education system and a lot of other good things, without raising income taxes at all. Reply
Vote up! Vote down!
+9
IN RESPONSE:
IndependentThinker
Jul 7, 09 3:50 PM CDT
I think that is one of the best ideas, ever.
Vote up! Vote down!
+5
IN RESPONSE:
shonangreg
Jul 7, 09 5:07 PM CDT
It is an interesting idea, but taxing all stock market transactions because of the problems with energy volatility due to speculation would be like taxing all round things because cars hit people.
Vote up! Vote down!
-3

View all 7 comments »

LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

4 Stories

(AP) - Oil prices plummeted to a one-year low below $83 a barrel today in European trading as investor fears of a severe global economic downturn sparked a panicked sell-off. "The whole market has lost confidence in everything," said one commodities strategist. "Everyone is worried about global growth, and... More »

MORE ABOUT:
oil • OPEC • recession • global economy • New York Mercantile Exchange • commodities • commodities exchange • oil prices • financial crisis

 Oil Falls Below $97 
 on Mild Ike Damage 

Better than expected storm drops crude $4.39

Sep 15, 08 7:14 AM CDT
(AP) - Oil prices fell below $97 a barrel today, after Hurricane Ike inflicted minimal damage to oil installations on the Texas coast. Light, sweet crude for October delivery declined $4.39 to $96.79 a barrel in electronic trading on the New York Mercantile Exchange by noon in Europe, after finishing... More »

MORE ABOUT:
$100 a barrel oil • commodities exchange • NYMEX • oil futures • oil prices

As Prices Soar, Congress Aims at Speculators

Out-of-control traders may be driving up oil, food costs, pols say

Jun 13, 08 8:30 AM CDT
(Newser) - 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... More »

MORE ABOUT:
Congress • Carl Levin • food prices • oil price • Commodity Futures Trading Commission • New York Mercantile Exchange • commodities • commodities exchange • speculation • Joseph Lieberman • speculators

4 Stories


Business  •  Politics 
TwitterFollow @NewserBusiness on Twitter

 
investors • natural gas • Commodity Futures Trading Commission • commodities • commodities exchange • speculation • oil futures • oil prices • commodity prices • Gary Gensler

from our news partners