Comment Text:
10-002
COMMENT
CL-00240
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[email protected]
Monday, April 5, 2010
9:18 AM
secretary
Public Comment Form
Below is the result of your feedback form. It was submitted by
([email protected]) on Monday, April 05, 2010 at 09:17:53
commenter_subject: futures trading in oil
commenter frdate: 4/5/20010
commenter_frpage: 17 CFR Parts 1, 20 a
commenter_comments: Where is this speculator money coming from? And
where are we headed? Where is the commodities and
futures regulating arm to make sure we are not
headed to 2007 - 2009 again?
WASHINGTON -- Oil consumption has fallen, demand
from American motorists for gasoline is flat at
best, and refiners that turn crude into fuel are
operating well below capacity. Yet oil prices keep
marching toward $90 a barrel, pushing gasoline
toward $3 a gallon in many markets, and prompting
American drivers to ask, "What gives?"
Blame it on the same folks who brought you $140 oil
and $4 gasoline in 2008: Wall Street speculators.
Experts attribute much of the recent rise in prices
to flows of speculative money into oil markets.
These bets are fueled by investor expectations that
the U.S. and global economies are poised to return
to growth and thus spark increased use of oil.
Strong growth in China supports the narrative of
rising oil consumption and tightening supplies.
"The thinking goes that rising stock (market)
prices implies expanding business activity, implies
growing energy demand, implies rising oil prices. I
think you can make that case, but it's awfully
weak," said Michael Fitzpatrick, vice
president-energy for MF Global, a financial firm
that brokers the sale of contracts for future
delivery of oil.
commenter name: Walter Henrie10-002
COMMENT
CL-00240
commenter firm: consumer
commenter_addressl : po box 1
commenter_city: allen
commenter state: kansas
commenter_zip: 66833
commenter~hone: 620 528 3376
