Congressman Kucinich Calls for Stronger Rules to Protect Consumers from Oil Speculation

[Better Believe It]

PRESS RELEASE

Kucinich Calls for Stronger Rules to Protect Consumers from Oil Speculation
Cleveland, Ohio, March 2, 2012

Fifteen to thirty dollars in the price of a barrel of oil is attributable to oil speculators. At $106 a barrel, the price of oil is leading to
increased gas prices for consumers. Consumers in the Cleveland area are now paying $3.74 a gallon for gasoline and the price is expected to rise further. Congressman Dennis Kucinich (D-OH) wrote to the Chairman of the Commodity Futures Trading Commission calling for stronger rules to prevent speculation.

In testimony before the Oversight and Government Reform Committee, Congressman Kucinich elicited from Senator Tom Coburn (R-OK) an admission that as much as $15 to $18 dollars is added to the price of a barrel of oil as a result of Wall Street speculation. The Consumer Federation of America estimates it is closer to $30 per barrel in 2011.

See Congressman Kucinich’s questioning of Senator Coburn here. The full text of Kucinich’s letter follows. See a signed copy here.

Gary Gensler
Chairman, Commodity Futures Trading Commission

Three Lafayette Center

1155 21st Street North West
Washington, D.C. 20581

Dear Chairman Gensler,

Today, drivers in Cleveland are paying more than $3.74 per gallon of gasoline according to the Energy Information Administration. That is a nearly 35 cent-per-gallon or 10% increase in the last month. As the Commodity Futures Trading Commission’s (C.F.T.C.) recent “Commitment of Traders” report shows, speculators on Wall Street and elsewhere reinforce their own gambling on the price of oil by issuing prophecies of ever-higher oil prices.

Americans deserve the strongest protection against the illegal and immoral behavior of those looking to exploit the market for their personal gain at the expense the rest of us. That is why I fought to strengthen the Dodd-Frank Wall Street Reform and Consumer Protection Act, which authorized the rule limiting position limits on futures and swaps contracts, including contracts for oil that will take effect later this year. I strongly urge the C.F.T.C to move swiftly to implement the strongest rule possible.

Until it does, I strongly urge the C.F.T.C. to utilize its authority under the recently-finalized rule strengthening the Commodity Exchange Act so that it can aggressively pursue market manipulators in futures markets. I stand ready to help you in that effort.

My constituents need relief. I look forward to working with you to find a way to protect Ohioans from excessive speculation.

Sincerely,

Dennis J. Kucinich

Member of Congress

http://kucinich.house.gov/News/DocumentSingle.aspx?DocumentID=282974

[socialindependocrat]

1. Every time you contract with your oil company for a fixed price

that's what you're doing. They take your dollars and they invest in oil futures and the price of oil goes up.

We have found the enemy and he is us.

NOW, that being said, if they limit these investments to people who use large quantities of oil/fuel then there will be less of a price increase.

That's a good example of why we need government regulation - because we won't do it ourselves.

[DCKit]

9. You're confusing micro and meta scales of speculation.

Sure, it's similar, but it's not the same.

When a homeowner purchases one of these contracts, it's for self-protection. When a hedge fund buys a contract, not so much.

[socialindependocrat]

11. But isn't it that..

the oil companies take all the contract money and
and then buy oil at a fixed price?

This may not have as large an impact as a hedge fund
but doesn't it all contribute to the investment into futures?

Teach me more please.

[julian09]

2. Finally someone who is on the consumer side, but he can't do it alone.

They always wait til gas approaches $4 a gallon, speculation happens at all prices.
If Goldmans Sachs and hedge funds bid on a oil contract make them take delivery or drink it.

[RufusTFirefly]

4. One clear indicator that our system is badly broken:

There is only one Dennis Kucinich when there should be hundreds like him.

For Heaven's sake, this is the People's House.
Time and time again, Dennis is out there all by himself.

[fascisthunter]

3. a dem that isn't a...

... corporate douchebag.

[white_wolf]

5. I really hope he doesn't lose his primary.

He is one of the few good voices Congress. A true voice crying in the wilderness.

[GreenPartyVoter]

8. We sure do need him!

[bvar22]

6. DURec for Kucinich.

[font color=firebrick][center]”Unlike the other candidates, I am not funded by those corporate interests.
I owe them no loyalty, and they have no influence over me or my policies.” ---Dennis Kucinich [/font]
[/center]




You will know them by their WORKS,
not by their excuses.
[font size=5 color=green]Solidarity99![/font][font size=2 color=green]
--------------------------------------------------------------------------------------------------------------------------------[/center]

[mindwalker_i]

7. 3.74? I'd kill for that!

CA, bay area, Chevron was just about $4.60. But you know what? I'm all for it. The more it's shoved in people's faces that they're taking it up the ass for oil companies, speculators, wall street, the closer they are to demanding a change. Pain is good for you!

[DefenseLawyer]

12. You really aren't speaking for working people trying to drive to work

We do need change. Asking the poor to pay for it though higher gas prices or worse, not being able to work, is something I can't agree with.

[mindwalker_i]

13. I actually am a working person trying to drive to work

CalTrain is more expensive than driving by about $80 per month, even with gas at about $4.50. I know high gas prices are harder on the poor, but that isn't a reason to keep them low, and hence, averting the very pain that will cause us to change. In fact, that might be good in that there are a lot more poor than rich. More people to complain.

[libtodeath]

10. Nationalize

the oil industry and be done with it.