usa -- Oil prices - regulator warns about excessive speculation
By ravisivan
@ravisivan (14082)
India
June 12, 2011 4:24pm CST
The head of the Commodity Futures Trading Commission says his agency will take action "to guard against the burdens of excessive speculation" after new data revealed that 90% of oil traders are short-term speculators whose bets are helping drive up prices, McClatchy News reports.
Day-trading and trading around expiration of futures contracts are likewise boosting grains and other commodities. McClatchy writes that data released Thursday by CFTC Chairman Gary Gensler suggest that "huge inflows of speculative money create a self-fulfilling prophecy that drives up commodity prices."
http://content.usatoday.com/communities/ondeadline/post/2011/06/us-regulator-cites-excessive-speculation-in-oil/1
In fact a month back I read in Detroit freepress that the price of oil will come down to $3.60 or so per gallon by July. But the way it has risen again to $4.05 after coming down to $3.90 confirms speculation in oil. I do not expect price of oil to come down.
3 responses
@hardworkinggurl (37062)
• United States
14 Jun 11
Becasue I try to be a smart shopper, I evaluate the rise and drops and I don't take kindly to the drops because they do not fool me into believing it is cheaper because in 6 months it goes up again then drop a tiny bit.
Before we know it, the fuel prices will be a weeks salary for just one full tank, too sad.
1 person likes this
@ravisivan (14082)
• India
14 Jun 11
while we can talk about it, even the governments are at the mercy of oil cartel. Some countries want production to be reduced so that the price remains higher.
@hardworkinggurl (37062)
• United States
12 Jun 11
Hi ravisivan, 
I am not sure about their calculations and or intentions. All I know that it is still very high anywhere near me as comparison as a few years back. Mine especially because my vehicle cannot use the regular gas.
My personal opinion is that they raise it so high, then bring it down a smidgen, back up and then back to the smidgen so that many can be fooled into thinking wow it is cheaper now.
I am not sure about their calculations and or intentions. All I know that it is still very high anywhere near me as comparison as a few years back. Mine especially because my vehicle cannot use the regular gas.
My personal opinion is that they raise it so high, then bring it down a smidgen, back up and then back to the smidgen so that many can be fooled into thinking wow it is cheaper now. 1 person likes this
@CTHanum (8233)
• Malaysia
14 Jun 11
Agree~ They always make it that way to fooled people that it is still cheaper. Anyway I am proud that my government always try to do the best so the people can have the reasonable price not like that imposed by other governments to their citizens.
1 person likes this
@venkatachary (1165)
• India
13 Jun 11
It is certainly the commodity trading is partially a reason for overall price rise.Whether it is commutative market or share market t,the regulating authority like SEBI is controlling on many ways in India and however it should also control fall or rise with the minimum percentage such 5% or 10%. The rise should not be more than that.In such a way the speculation can be controlled.
@ravisivan (14082)
• India
13 Jun 11
The situation in India is partially monitored/controlled. In USA it is free economy. If the price of oil rises in the international market it rises here also. have a good day.
