Oil Speculation: As Explained by "Trading Places"

Consumers are getting crushed at the pump by high gas prices. Putting a stop to rampant speculation in oil markets is one way to help protect families and small businesses from inflated gas prices.

There are many lessons to be learned from the summer of 2008 - the last time we saw the price of oil rise to similar record levels. The Commodity Futures Trading Commission (CFTC) - the federal regulator who overseas oil markets - has filed a lawsuit against two traders their firm, charging them with running a scheme in 2008 that drove up prices and reaped them more than $50 million in profits. This is one of the biggest cases ever by the CFTC in the energy marketplace, and it underscores the importance of having have strong enforcement of our laws against manipulative activities in these markets.

The CFTC is an important force in the United States ability to protect consumers from rising gas prices and bad actors manipulating the oil market. Yet, believe it or not, Republicans in Congress are stripping funding for the CFTC - making it easier for oil market speculators to cheat the system and raise gas prices.

A story about the case appeared in the Wall Street Journal on May 25, 2011
http://online.wsj.com/article/SB10001424052702304520804576343830615621402.html

Learn more at http://democrats.naturalresources.house.gov

Category:

News & Politics

Tags:

• Oil Speculation
• Oil
• Trading Places
• Eddie Murphy
• Dyer
• CFTC
• Commodities
• Gas Price
• budget
• Natural Resources

[09090909156]

funny..lol!



[AlwaysZeroOne]

@theunbubba Republicans want domestic drilling but they want to sell the oil to other countries. So what do you do now if you have domestic oil but isn't in US market that was intended in the first place?

[theunbubba]

Oil speculators have nothing to do with price spikes. World events do. That and the dearth of domestic supply created by envirowhackos keeping us from drilling for our own PLENTIFUL supply of crude. That supply that isn't counted in our reserves because it's in designated no drill areas. So not counted. Sick creeps.

[theunbubba]

@drumsmetalheavy11 Get your head out of Obama's ass. This is all propaganda. Speculation evens out the markets and provides supply in times of great need.

[drumsmetalheavy11]

@theunbubba dude you really have no ideal of what your talking about. But if that makes you feel smart by calling others dumb then so be it. Fact is the derivative markets is now over 65trillion and deals 100% in speculation. It was created by Enron and now all 5 major banks deal in this casino type gambling, which is 100% unregulated. Repeal Glass Steagall act which seperates the investment banks from the lending banks. But congress is bought and paid for. Hence the 2008 Tarp Bank Bailouts.

[drumsmetalheavy11]

Oil speculators (such as Goldman Sachs and the Koch Brothers owned Koch Industries) can determine almost 2/3 of the price of gas, making huge profits. The congress which is bought off turns a blind eye to it and makes political attachs like saying " It's Obama's Fault" or "We need to drill more." Pure Bullshit! But money talks and we the people get screwed and pay more at the pump.

[WKPporgressive]

Bomb Iran...they have already attacked US citizens by threatening to close the Hormuz strait and spooking the pussy oil speculators.....

[theunbubba]

You're an idiot. The problem is with the envirowhackos that don't want us to drill for more oil. Without those whacko's there can be no speculation. Hell I bet the speculators are PAYING the damned envirowhacko movement to disrupt supply.

[MrNWOExposed]

Remember when they only had monthly options expiration cycles? They weren't making enough money so they had to create weekly options so they can make 100% shorting the contract down, then buyback the short for pennies on the dollar. Then they can buy the same contract back and make several hundred %. Example, NFLX Jan 100 Call as high as $173.95 down to $.06, back up to $1.60 3 days after hitting $.06.

[Salahuddin2009a]

@oneoaken

Speculation is gamble, only casino owners win at the end of the day. Speculative Trading is a zero sum activity; some must lose in order for others to make a profit. Can you compete with the banks?