Oil Speculation Analyses
(AP/CBS)
Why The London Loophole Should Be Closed
On June 12, US Senator Richard Durbin introduced legislation to provide the Commodity Futures Trading Commission (CFTC), the federal agency that oversees commodity derivatives markets in the US, with regulatory authority to oversee trading activity in oil markets. This was followed by an announcement from the CFTC that it would change its policy relating to US traders' ability to execute contracts in West Texas Intermediate (WTI) crude oil contracts. There would be nothing remarkable about these actions, except for one thing: the activity that is being targeted takes place on a foreign exchange - in London.
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The Atlantic Journal-Constitution:
Speculators Aren't Driving Oil Prices, ICE Says
IntercontinentalExchange is cooperating with regulators in their efforts to restrict oil traiding, but the Atlanta-based company insists that speculation is not the reason for soaring prices.
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Wall Street Journal: [Subscription Service]
Oil Speculation Draws Scrutiny
Lawmakers eager to curb speculation in oil markets got support Monday from witnesses who told a House subcommittee that oil prices could fall sharply if Congress put strict limits on trading in energy futures by investment banks, pension funds and other financial investors.
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