В связи с тем, что бензин на заправках уверенно движется к доллару за литр, политики начали вялое шевеление на предмет шугануть спекулянтов.
Oil Trading Policy Needed Soon, Senator Cantwell Says (Update1)
By Daniel Whitten
April 16 (Bloomberg) — Federal regulators should say how they plan to curb speculation in the oil market before the summer driving season to ward off potential higher prices caused by speculative activity, Senator Maria Cantwell said.
Oil markets may be susceptible to the same sort of manipulative practices that lead to higher electricity prices caused by the Enron Corp. scandal, the Washington Democrat said today in an interview.
The Federal Trade Commission is required to issue a rule detailing how it would oversee oil markets under legislation sponsored by Cantwell that became law last year. Signaling its intentions to investigate oil speculators could curb manipulative practices, she said.
With a federal enforcement policy, oil traders would start asking, ``are we doing that? Are we holding supply off the coast just until the price goes up another dollar and then we are going to put it into the marketplace? Are we shorting supply purposely anywhere? Do we know that we are not shorting supply anywhere? People would start to ask hard questions,'' Cantwell said.
Cantwell said the threat of stronger enforcement alone could bring down prices. Last week she sent a letter to trade commissioners seeking an outline of their plans to develop a rule to prevent manipulation.
``This price is just wreaking havoc on our economy,'' Cantwell said. ``I want to make sure that consumers know we are doing everything we can to have strong laws on the books.''
Symptom or Cause?
``Speculative buying is a symptom of high oil prices, not the primary cause,'' said James Lucier, a political analyst at Capital Alpha Partners in a written response to questions. ``Most professional traders think financial speculation contributes to oil prices, but probably not more than 10 to 15 percent.''
Oil today reached a record $115.07 a barrel on the New York Mercantile Exchange, and gasoline futures touched a record $2.933 a gallon.
``There's no record of who's trading what, and how much,'' said Matt Cota, executive director of the Vermont Fuel Dealers Association. ``When there are no bodies, there is no crime.''
Traders on unregulated exchanges such as Atlanta-based Intercontinental Exchange Inc. can influence prices because the traders don't have to disclose their holdings and there is no regulation of foreign exchanges, Cota said.
Sara Banaszak, senior economist at the American Petroleum Institute, said that active trading on exchanges creates a healthy market. She said the fact that there have to be willing buyers and sellers, limits the opportunity for nefarious activities.
Caution Needed
``It's understandable that the FTC is using extreme caution,'' Banaszak said. ``The wrong action would restrict trading activity and restricted trading would limit transparent price disclosure and could lead just as easily to higher prices.''
Cantwell said high prices harken back to 2000 and 2001 when Enron traders manipulated Western energy markets by ordering plant shutdowns and using other tactics to drive up energy prices during California's power crisis. Wholesale power prices soared, and electricity supplies to homes and businesses were restricted, leading to rolling blackouts.