I hope that the Commodity Futures Trading Commission takes action to regulate oil future speculators. While I believe in a free market system we do need some regulation to control speculators controlling prices beyond natural market forces such as a civil war in a major oil producing nation, a refinery being destroyed by a hurricane, etc.
The proof that speculators are controlling oil prices, I believe lies in the fact that oil prices fell drastically following the Wall Street melt down last year. As far as I heard there was no increase in oil supply or any other market driver. The reason prices must have fell was because investors needed to pull out their money from oil futures to cover other investments.
I remember being in California when there were the rolling blackouts in the late 90′s. Let’s not forget that when Enron went under the blackouts stopped. It is still possible for a group of investors to control the price of commodities to their own benefit.
Let’s hope that action is taken to regulate non-market driven wild swings in oil prices.
