DORGAN WELCOMES CFTC HEARINGS ON OIL SPECULATION, WANTS ACTION
Tuesday, July 7, 2009
CONTACT: Justin Kitsch
or Brenden Timpe
PHONE: 202-224-2551
(Washington, D.C.) -- U.S. Senator Byron Dorgan (D-N.D.) today issued the following statement in response to the Commodity Futures Trading Commission’s (CFTC) announcement that it will hold hearings on oil speculation during July and August. Last summer, as gas prices skyrocketed due to oil speculation, Dorgan led the charge in the Congress to put downward pressure on gas prices by cracking down on speculators.
“The announcement by the Chairman of the CFTC to hold hearings on oil and commodity speculation is a positive first step as is the announcement requiring greater transparency of traders’ activities in the marketplace. If these hearings lead to rigorous federally imposed position limits across all markets on oil speculators looking for a quick buck at the expense of American consumers, then that will be action I can applaud.
“Such action is long overdue and essential to stopping the excess speculation in our commodity markets, especially in crude oil. Despite my efforts to stop this speculation, the CFTC was irresponsible last year when it did nothing as oil prices skyrocketed to almost $150 a barrel and gas prices jumped to more than $4 a gallon as a result of excess speculation.
“The CFTC’s ongoing review of the many exemptions it has granted over the years to speculators is also long overdue. The CFTC should immediately limit or revoke exemptions granted to speculators using the markets to gamble on the future price of oil and other commodities. This does nothing more than drive up the price of oil and pick the pockets of American consumers.
“I have been skeptical of the nomination of the current CFTC Chairman and I voted against his confirmation. I said then that I wanted more than words; I wanted action. I welcome the announcement of hearings, but it is only concrete action that will prove the CFTC is finally an effective cop on the beat protecting the wallets of American consumers. Revoking or limiting exemptions for speculators and strong federal position limits for speculation are the kind of actions we are all waiting for.”
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