Agriculture Committee Reviews Trading in Energy Markets
WASHINGTON - Yesterday, the House Agriculture Committee held a hearing to review trading in energy markets. The Committee has
jurisdiction over the federal agency responsible for preventing fraud and manipulation in oil and gas futures markets.
"A growing number of people believe a flood of speculative money into energy futures is driving oil and gas prices higher and
creating instability," said Committee Chairman Collin C. Peterson. "The Agriculture Committee has legislative jurisdiction over the
Commodity Futures Trading Commission (CFTC) and futures markets, and we intend to examine the issue of energy market trading
thoughtfully and carefully next month, separating the facts from the rhetoric. I look forward to future hearings in July to examine
the legislation that has been introduced and to get all points of view in order to address possible manipulation or excessive
speculation in the energy markets."
"Yesterday's hearing was an important step in addressing our nation's energy crisis," said Committee Ranking Member Bob Goodlatte.
"The Committee needs to continue to rigorously investigate the impact of futures trading on energy prices and we need to do so
quickly. I believe increasing domestic supplies holds the greatest prospect for relief from high prices. America's farmers and
ranchers are hit disproportionally hard by high energy cost and they need relief now."
The Committee heard testimony on trading in energy markets from Walter Lukken, CFTC's Acting Chairman. CFTC is the chief regulator
of commodity futures and options markets. The conference report on the Farm Bill, now signed into law, reauthorizes CFTC through
2013.
The opening statement of Chairman Lukken is available on the Committee website at http://agriculture.house.gov
A full transcript of the hearing will be posted on the Committee website at a later date.
Lately I have determined that as soon as someone says, "we intend to examine the issue" you are going to be hosed in a very short time. Here's wishing you better luck.
ReplyDeleteI knew that there was a lot of speculative money dumped into the crude oil and gasoline market over a year ago! I am not shocked that it took the government this long to wake up.
ReplyDeleteSteve, I was interested to see that this has finally come to the attention of folks in power...or perhaps that they are admitting that it has come to their attention, now that everyone else is aware of it....we shall see I guess where they go with it
ReplyDeleteTim, I think you are right...and I think that their slow awakening may have something to do with many government entities having money invested in oil futures, including many states and municipalities.