Comment Text:
As a manufacturer, I am writing to voice my support for immediate adoption of proposed rule (RIN 3038–AD15 and 3038–AD16 Position Limits for Derivatives).
The recent spike in the price of petroleum products is alarming, and by many expert accounts, is fundamentally driven by speculation. In addition to current gasoline, diesel, and heating oil costs, I know the current speculative environment and related pricing will have additional far reaching consequences for manufacturing costs, consumer goods, and the economic health of our country. This will be compounded as the duration and extent of the current pricing environment expands.
Although I am not typically supportive of strong government regulation, the commodity markets are replete with financial speculators, investment banks, and hedge funds trading paper oil for their profit at American's expense. I have come across statistics that indicate that each barrel of oil is traded between 8 and 20 times before it is delivered - this is simply unacceptable.
We need to bring comprehensive regulation to the related markets to stem this abuse of our free market system.
I believe the Commission understands its responsibility under existing law to prevent excessive speculation as an undue and unnecessary burden on interstate commerce.
Commodities are vital resources to American industries, businesses and consumers. Well functioning markets are critical to commodity price discovery. Position limits, as proposed in this rule, will play a critical role in reestablishing market fundamentals. I urge adoption of this rule.
Respectfully,
Roger Marran
President
Energy Kinetics, Inc.
51 Molasses Hill Rd.
Lebanon, NJ 08833
