Comment Text:
In recent days, speculative trading has hit new highs which has translated into prices not seen since 2008 and that cannot easily be explained by supply and demand. Stockpiles of crude oil are at historic highs. Libya sells very little oil to the United States. Most of our supply is domestically produced or imported from Canada and Mexico. Despite ample supply, many experts believe we are paying higher costs based on an assumption that future prices will rise or what is known as a "fear premium."
The Commodity Futures Trading Commission (CFTC) now has the authority to enforce aggregate position limits on speculation in the oil futures markets to reduce the dominant positions investment banks and hedge funds have secured in oil futures markets. The CFTC needs to take action and vote in favor of the position limit proposal.
