Blumenthal Wants Crack Down on Oil Speculation

The senator from Connecticut issued this press release in response to high gas prices.

U.S. Senator Richard Blumenthal called on the U.S. Commodity Futures Trading Commission (CFTC) and U.S. Attorney General Eric Holder to crack down on the improper speculation and manipulation of gasoline prices.

In two different letters sent to the CFTC and Holder, Blumenthal asked for stringent and immediate enforcement of legal prohibitions that would help stop these abuses. 

In his letter to the CFTC, Blumenthal asked the agency to enforce their newly adopted position limit rule — imposing limits on the size of speculative bets that can be made by investors on future prices of gasoline.

Last May, Blumenthal and his colleagues called for the CFTC to adopt these position limits in order to prevent market participants from manipulating prices at the expense of American consumers. 

"I am writing to urge immediate and strong enforcement of the newly adopted position limit rule to help stop increasingly rampant speculative trading reportedly driving recent rapid price increases in gasoline," Blumenthal wrote. "Speculators continue to artificially inflate the price of gas, and consumers continue to pay the price. The Commission has done the necessary work to clearly establish legal authority to enforce position limits. It should use this authority now."  

Blumenthal’s work on the improper speculation and manipulation of gasoline prices includes previous requests to the Department of Justice. On April 21, 2011, Holder announced the formation of an Oil and Gas Price Fraud Working Group to focus specifically on fraud in the energy sector by monitoring oil and gas markets for potential violations of criminal or civil laws.

The purpose of the working group was to safeguard consumers against unlawful harm. At the time, Blumenthal sent a letter to Holder maintaining that “announcing such investigations and beginning to issue subpoenas could curb some of the worst speculative activity that may well be underway at this very moment.”

However, the working group was slow to release information about its investigations or conclusions. On March 18 Blumenthal sent another letter to Holder asking that he make use of the working group that had, at the time, been in existence for almost a year.  

Steven DeVaux September 20, 2012 at 09:36 AM
There is the answer. Let them go to some other country (China, India) if they want to speculate...and take their oil with them. Who the hell are they to sell something at the price they want? They should be made to sell it at the price the consumer is willing to pay! We do need no stinkin' oil trading here in the U.S. Warning: Genius at Work.
Dr. Robin Appleby September 20, 2012 at 10:08 AM
As the government prints more and more dollars out of thin air......guess what.....it takes more and more dollars to buy a barrel of crude oil. So everything made from oil, grown using oil, mined using oil and transported using oil.......takes more dollars to buy. What do we think, we have the oil producing countries fooled ? Like they dont know that our government is destroying the value of the dollar (and your savings and pensions and 401 K from a lifetime of hard work)? Since the government got rid of the gold and silver backing paper money...it's just pretty pieces of paper.....they can (and will) print as much money as they want and need to bailout their friends and win elections. Over 700 times, people in various societies have tried using purely paper, or 'fiat', money. Each time, the politicians just couldn't stop themselves from printing 'just a little bit more' money. The VALUE of the money went to ZERO in less than a human lifetime. But to divert and fool the Honey Boo Boos, the politicians will try to blame the 'greedy speculators' while they keep destroying the value of the money. Happened every time in history.....blame the greedy speculators. Ban them even....wont save the currency they are busy creating/printing out of thin air.
Mary Davis September 20, 2012 at 11:57 AM
Dr. Appleby: I found some interesting statistics about banks printing money... http://theeconomiccollapseblog.com/archives/6-charts-which-prove-that-central-banks-all-over-the-globe-are-recklessly-printing-money The Democrats just don't seem to get it?
Steven DeVaux September 20, 2012 at 04:40 PM
Always notice with the Democrats they seek out who to BLAME and not to solve the GAME? Republicans may steal, but at least when THEY DO, they do it to your face. Democrats always want to know "What's in it for me?"


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