Energy speculators draw heat from US Congress. Germany in call for ban on oil speculation

Senate Democrats have already proposed legislation that would impose stiffer margin requirements on energy trading........

Next month, Representative John Larson, a Connecticut Democrat, plans to go even further, proposing legislation that would essentially ban over-the-counter trading of energy futures by traders who don't plan to take physical delivery of the commodity. While Nymex trading would be largely unaffected, billions of other trades could potentially be brought to a halt.

The idea for the bill, Larson says, came from local suppliers of heating oil, gasoline and diesel in Connecticut, who say the price spike can't be explained by simple supply and demand. While advocates defend the futures market as a way of hedging against higher prices, Larson doesn't buy it. "We see this as nothing short of greed on the part of speculators," he says.

He acknowledges that other legislators are likely to think his bill "is a little too bold or goes too far."

"But there is a widespread feeling amongst the leadership in Congress and the rank and file that something has got to be done in this area," he says. "And this situation requires bold action."

While Larson's bill is unlikely to pass, much less be signed into law, it's notable that even legislators who consider it a bit drastic say they would consider voting for it.

While Larson's bill is unlikely to pass, much less be signed into law, it's notable that even legislators who consider it a bit drastic say they would consider voting for it.

unlikely to pass......????????????

it's notable that they would consider it???????????????????????

WTF?????



LET'S SWAMP OUR CONGRESS CRITTERS WITH LETTERS FOLKS!!

It's probably too late, but what the hell!

Excerpt from Larson:

“People shouldn’t be allowed to speculate purely with paper, fluctuating and driving the cost of oil, especially when we have adequate supply,” Larson said during a news conference in the Capitol complex. “And demand, in fact, has gone down because of the crunch that everyone finds themselves in.”

Gene Guilford, executive director of the Independent Connecticut Petroleum Association, said most Americans don’t realize that the daily setting of prices for oil, natural gas, electricity, gasoline and diesel fuel contracts takes place on worldwide commodities exchanges, led by the New York Mercantile Exchange.

He said over the last five or six years investment banks, hedge funds and pension funds have forced up demand in the contracts above and beyond the basic rules of supply and demand.

“It’s the financial-services industry in this country that over the last few years has started telling the American people and the Congress of the United States that supply and demand no longer matter,” Guilford said. “When supply and demand no longer matters, then the marketplace no longer works the way it was supposed to work.“

Related: German leaders are to propose a worldwide ban on oil trading by speculators, blaming the latest spike in crude prices on manipulation by hedge funds.


WTF is wrong with our Congress? Who are they working for anyway?

I guess it's pretty obvious.