Gas Prices Spiked By Speculators, Congressmen Claim

[steve2470]

http://news.yahoo.com/gas-prices-spiked-speculators-congressmen-claim-064713484--abc-news.html

Excessive speculation in the oil futures market may be costing you 15 percent or more at the gas pump and playing a "significant" role in rising gasoline prices, according to a joint letter from 68 members of Congress that ABC News has obtained.

The joint letter, which cites a recently updated report by the St. Louis Federal Reserve titled "Speculation in the Oil Market," urges immediate action by the Commodity Futures Trading Commission to install caps on the biggest traders on Wall Street, preventing them from controlling unusually large positions in the oil futures trading market.

The Reserve's report called "Speculation in the oil market," which was just updated in February 2012, concluded there are two main factors for large price swings at the gas pump.

It says "global demand shocks," such as those caused by turmoil in the Middle East, "account for the largest share of oil price fluctuations."

[zbdent]

1. That's the explanation used under Bush43 ...

to distance him from the high prices ...

[DJ13]

2. After 2008, why have they allowed this to happen again?

There are some slow learners there in DC.

[doc03]

3. Same as everything else the Wall Steet lobby n/t

[Dokkie]

5. Sometimes I wonder if people know what speculation is

Its just a bunch of industries, institutions, investment groups trying to lock up on a price when they speculate on future interruptions in supply of gas. This move by the speculators would cause the producers to increase the price to match the increased demand for it. Now if the event that was supposed to happen fail to occur, all those people who locked in on the increased price of gasoline gets burnt and if not, they say the money of their customers (think airlines) by avoiding increasing prices on them.

Now if you really believe this is what is happening then you should be praying that Obama stop imposing sanctions on Iran and also that he can convince the Israelis to hold off attacking Iran and disrupting the Iranian oil production. All which Obama is capable of doing. But I don't really think you believe that.

The problem I believe is with inflation, remember all the QEs talk by the federal reserve? all the printing of dollars to help the economy. Well this is what the help looks like once the effect of all those printing start trickling down to the rest of us. The price of oil is virtually stable when compared to the price of corn, silver, soybeans etc etc, in fact it is decreasing when compared to gold. They are stealing our money and nobody wants to say anything

[Terry in Austin]

4. And bubonic plague is caused by rats

Also sorta true, but won't do you much good if that's as far as you look.

Bottom line, if oil weren't getting scarcer, speculators wouldn't be as interested in it.