At a media event in Fremont yesterday, Senators Maria Cantwell and
Patty Murray demanded that federal regulators crack down on excessive
oil market speculation that may be contributing to artificially high gas
and diesel prices in Seattle and around the country.
New Roots Organics hosted the event which highlighted local small
businesses hurt by the oil spike. These small businesses were
represented by Warren Aakervik from Ballard Oil, which supplies fuels
for fishing boats; and Carolyn Boyle, owner of New Roots Organics and
Doug McClure of Zeek’s Pizza. New Roots Organics and Zeek’s pizza both
deliver their goods and high oil prices hurt their businesses.
The Wall Street Reform bill approved last year called for the U.S.
Commodity Futures Trading Commission (CFTC) to implement speculative
position limits in energy markets within 180 days of enactment. The CFTC
is more than three months late on their January 2011 deadline to take
action, while consumers continue to pay high prices at the pump, a press
release from Cantwell’s office states.
“In last year’s Wall Street Reform law, we gave the financial cops
the tools they need to rein in rampant oil speculation and protect
consumers. Today, we’re demanding that they use those tools to help
relieve the burden of gas prices on families and small businesses in
Seattle and across the country,” Cantwell said in a press release.
Cantwell believes that implementing speculative position limits –
restrictions on the size of investors’ commodity holdings – would limit
price volatility and unpredictability in commodities such as oil.
CFTC Commissioner Bart Chilton said in a March 25, 2011 letter to
Cantwell that oil speculation is at “an all time high,” up 64 percent
since June of 2008.
According to analysis compiled by Chilton, excessive oil speculation
costs drivers between $8-16 per tank, depending on the kind of car they
drive.
“Seattle drivers are paying at the pump for excessive oil
speculation, while federal regulators have blown off deadlines and
failed to act,” Cantwell said.
Gas prices in Seattle have gone up 52 cents-per-gallon in just the
last two months, hurting small business and burdening families and the
economic recovery. Diesel prices are a dollar more per gallon over this
time last year, hitting truckers, farmers and transit services
particularly hard. A family of four can expect to pay $337 more to drive
this summer than last.
“I am proud to join with Senator Cantwell to call on the CFTC to
crack down on the speculators and market manipulators who are preying on
drivers here in Seattle and across Washington state,” said Senator
Murray.
“Speculators are kicking American families and small business owners while they are down, and it needs to stop.”
According to a new data set released today by Senator Cantwell and
U.S. Commodity Futures Trading Commission (CFTC) Commissioner Bart
Chilton, Honda Civic drivers are paying $8.35 per gas tank due to
excessive speculation; Ford Explorer drivers are paying $14.45 more per
tank; and Ford F150 drivers, the most popular pick-up, are paying $16.69
more per fill up.
– Ballard News Tribune
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