Congressman Christopher Shays (CT-4) and Congressman Ed Perlmutter (CO-7) introduced a resolution in the House of Representatives today urging the President to direct the Commodity Futures Trading Commission (CFTC) to work with the United Kingdom Financial Services Authority to address the increased speculation in the oil futures market many believe is falsely driving up oil prices.
Their bipartisan resolution would establish position limits on oil futures traded on the Intercontinental Exchange similar to those established by the CFTC for traders on the New York Mercantile Exchange. It also urges the CFTC to require institutional investors to disclose their position limits.
“There is no doubt the absence of oversight in the energy trading market has resulted in excessive speculation by traders, which in turn has led to higher energy costs,” stated Shays. “We need to limit the total amount of oil on which traders can speculate and increase transparency on institutional investors so we can get an accurate sense of what their impact on the problem has been.”
“At a time when energy prices are rising by the day, we must take action to limit volatility and speculation in the market. Furthermore, we must commit to investments in renewable energy research and development in order to reduce our dependence on oil. This resolution establishes transparency and accountability for those who drive the price of energy in our nation,” said Rep. Ed Perlmutter (CO-07).
