Comment Text:
10-002
COMMENT
CL-07398
From:
Sent:
To:
Subject:
[email protected]
Tuesday, April 13, 2010 3:59 PM
secretary
Proposed Speculative Position Limits on Energy
Shuhsien Batamo
326 Leisure Dr.
Stafford, TX 77477-5830
April 13, 2010
David Stawick
Secretary, Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
I am writing in support of the CFTC's Proposed Federal Speculative
Position Limits that will reestablish speculative position limits on maj or
energy commodities. This rule will provide stability to the marketplace
and help prevent future price bubbles. The CFTC must quickly approve a
strong rule to protect America[] s struggling economy. Wall Street's
speculative trading in oil not only hurts the economy, but hurts every
American who pays excessive prices at the pump, for groceries, home
heating oil and everything related to transportation.
Our tax dollars were used to bail out large Wall Street firms when they
were on the brink of bankruptcy. It is these same institutions that
pushed the price of gasoline well past $4 per gallon in 2008 by gambling
on oil and continue to profit at every American [] s expense.
Rampant oil speculation by large Wall Street trading firms has resulted in
extreme volatility in energy markets and unwarranted price spikes in
recent years. Given that supplies are at record highs and demand remains
weak, fundamentals cannot explain recent price hikes and destructive price
swings. Unless the CFTC adopts the proposed rule, markets will continue to
fluctuate wildly.
Position limits existed in energy markets until 2001 and currently apply
to agricultural commodities. CFTC should use its existing experience to
regulate position limits of speculators and prevent excessive
concentration in the energy markets, while ensuring that exemptions to
these limits afforded to real physical players such as fuel cooperatives,
public utilities, truckers and airlines are not exploited by big banks and
billionaire investors.
Energy consumers desperately need stability in the marketplace. I
encourage the CFTC to adopt the Proposed Federal Speculative Position
Limits before volatile fuel prices further harm the country's already10-002
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weakened economy.
Yes, I am also very concerns about the job security. My husband works for
Valero and eveytime the crude price goes up, he comes home telling me be
prepared that he may get the pink slit (laid of~). The reason is that
Valero's business is manily on refinery of crude oil. If the crude oil
price goes up, Valero feels the pain just like I feel pains at the pump.
Valero investes huge funds in alternative energy.
I think because of the huge profits of curde oil generated that Exxon and
Chervon are moving away from refinery business which has very little
profits. Exxon is still mainly rely on crude and sort of refusing to move
to alternative energy. You can also read the report from U.S. News and
World Report, April 2010 publication.
Speculation is good but NOT the excessive speculation. The fragile economy
can not afford the drastic energy cost increase. My point is that if
people have no business in the refinery, they should back off from
purchasing curde oil contracts. Many of these contracts are not hold to
maturity because the big investment bankers or pension funds do not want
the physical crude oil.
Please consider the general public's opinions, not just listen to the Wall
Street.
Thank you for your time and consideration.
Sincerely,
Shuhsien B~amo
281-261-1131
