Comment Text:
Commodities future speculation is out of control. The effects are destroying our economy and the Job Market. There are non commodity financial speculators in control especially in pricing crude oil futures . Crude oil supplies are adequate and even in surplus as demonstrated by OPEC's ability to withhold available supplies from the oil market to manipulate prices. Speculators have driven USA and World markets to the economic disaster Oil Minister Yemeni of Saudi Arabia predicted many years ago. He had the Kingdom maintain competitive oil prices to stimulate the World economies creating greater crude demand. He knew high oil prices would collapse the economies of the world. The cure is simple. Raise margin requirements to a minimum of 50% of the contracts total value or higher if necessary. The legitimate hedgers can than hedge their products at levels that will deter the speculators controlling more paper oil than real oil exists in the physical world market. Clearly World economies function best with crude oil prices well below $50.00 a barrel and suffer catastrophe when speculators push Crude Prices over $50.00. The vast supplies withheld from the market by OPEC and others demonstrates that there is no shortage of crude in the world. Speculators create jargon and press releases to support the long positions they hold by investing pennies when compared to the value of the crude oil they hold in futures contracts.
