Vermont Sen. Bernie Sanders wrote a letter to President Barack Obama on Thursday asking him to call for the immediate resignation of Commodity Futures Trading Commission’s (CFTC) regulators who are unwilling to enforce a new law that would stop excessive speculation in oil markets.
“I urge you to make it clear to the CFTC that they must obey the law and establish strong oil speculation limits as soon as possible,“ the senator wrote. ”I would also urge you to ask for the immediate resignation of any CFTC commissioner who refuses to obey the law and nominate someone else who will.”
The law, called the Dodd-Frank Wall Street Reform and Consumer Protection Act, places speculative position limits that would limit the size of the bets that speculators can make.
The excessive practice of oil speculation involves the buying of large sums of unused oil, which then produce the illusion that there is increased demand for oil, ultimately pushing up gas prices for average Americans.
Republicans and oil companies, however, have pointed to the presence of unrest in the Middle East, increased seasonal domestic demand, and increased international demand from China and India as the main causes for the observed increase in gas prices.
The Federal Trade Commission (FTC), which the Obama administration asked to investigate the causes of increased gas prices, found that prices are going up because of normal market forces.
In a letter reviewed by Dow Jones Newswires, the FTC’s investigation “determined that none of the complaints involved conduct that violated” FTC rules, reports the Wall Street Journal.
Democrats, including Bernie Sanders, and a group of 11 other senators who sent a letter to the chairman of the CFTC last month calling for increased enforcement, argue that the 133 percent rise in gas prices since 2008 cannot possibly be explained purely by these market forces.
An article from the Nation published in March argues that several figures such as observers from George Soros, Hedge Fund manager Michael Masters, and former CFTC staffer and derivatives expert Michael Greenberg have pointed out that supply-and-demand principles cannot possibly account for the peak in gas prices.
Moreover, a 2006 report by the Committee on Homeland Security and Governmental Affairs in the Senate also confirmed, stating, “Speculation has contributed to rising U.S. energy prices, but gaps in available market data currently impede analysis of the specific amount of speculation, the commodity trades involved, the markets affected, and the extent of price impacts.”
“I urge you to make it clear to the CFTC that they must obey the law and establish strong oil speculation limits as soon as possible,“ the senator wrote. ”I would also urge you to ask for the immediate resignation of any CFTC commissioner who refuses to obey the law and nominate someone else who will.”
The law, called the Dodd-Frank Wall Street Reform and Consumer Protection Act, places speculative position limits that would limit the size of the bets that speculators can make.
The excessive practice of oil speculation involves the buying of large sums of unused oil, which then produce the illusion that there is increased demand for oil, ultimately pushing up gas prices for average Americans.
Republicans and oil companies, however, have pointed to the presence of unrest in the Middle East, increased seasonal domestic demand, and increased international demand from China and India as the main causes for the observed increase in gas prices.
The Federal Trade Commission (FTC), which the Obama administration asked to investigate the causes of increased gas prices, found that prices are going up because of normal market forces.
In a letter reviewed by Dow Jones Newswires, the FTC’s investigation “determined that none of the complaints involved conduct that violated” FTC rules, reports the Wall Street Journal.
Democrats, including Bernie Sanders, and a group of 11 other senators who sent a letter to the chairman of the CFTC last month calling for increased enforcement, argue that the 133 percent rise in gas prices since 2008 cannot possibly be explained purely by these market forces.
An article from the Nation published in March argues that several figures such as observers from George Soros, Hedge Fund manager Michael Masters, and former CFTC staffer and derivatives expert Michael Greenberg have pointed out that supply-and-demand principles cannot possibly account for the peak in gas prices.
Moreover, a 2006 report by the Committee on Homeland Security and Governmental Affairs in the Senate also confirmed, stating, “Speculation has contributed to rising U.S. energy prices, but gaps in available market data currently impede analysis of the specific amount of speculation, the commodity trades involved, the markets affected, and the extent of price impacts.”
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