Press Releases
Brendan Daly/Nadeam Elshami
202-226-7616
06/25/2008
Pelosi to Bush: Direct CFTC to Curb Excessive Speculation in Energy Markets
Washington, D.C. – Speaker Nancy Pelosi sent the following letter today to President Bush calling on him to direct the Commodity Futures Trading Commission to use existing its emergency authority to curb excessive speculation in energy markets and ensure that energy prices are fair.
Below is the text of the letter:
June 25, 2008
The Honorable George W. Bush
The President of the United States
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Dear Mr. President:
The historic rise in oil prices resulting in over a $4 per gallon price at the pump demands bipartisan attention now. The price of crude oil has skyrocketed 351% -- from $31 per barrel in 2003 to nearly $140 per barrel today. Coinciding with this sharp run up has been a 425% increase in futures held by traders on the New York Mercantile Exchange (NYMEX). While several factors play a role in this unprecedented rise in price, including global supply and demand as well as the weak U.S. dollar, experts have testified this week before Congress that excessive speculation in the oil futures market may be responsible for inflating prices $20 to $60 per barrel.
The International Monetary Fund recently concluded that "speculation has played a significant role in the run-up of oil prices." Given the extraordinary impact on the American economy and consumers, I call on you to immediately direct the Commodity Futures Trading Commission (CFTC) to use existing emergency authority under section 8a (9) of the Commodity Exchange Act (CEA) to restore order to the market to ensure that prices are fair. Despite growing reports of excessive speculation in energy markets, the CFTC has refused to act.
The CFTC's prompt action would send a strong signal to the market that CFTC will be both a "cop on the beat" and be prepared to use its power to address systemic weaknesses that are contributing to market instability.
Thank you for your attention to this matter of great importance to the American people.
best regards,
NANCY PELOSI
Speaker of the House