Do you think that market speculators have an influence on oil prices?
http://www.stopoilspeculationnow.com makes it really easy to send either an email or a printed letter to your local congressman. You enter your address and they look up who represents you and their email address. Then the site generates a personalized letter for that representative you choose. They even send the email for you or you can print out a letter for mailing.
The following is the default letter that the site generates. You have an opportunity to edit the letter before it's sent so if you think that this is hooey and that market speculation has no effect on oil prices you can change the letter to express that point of view too.
The Honorable ________
House of Representatives
1728 Longworth House Office Building
Washington, DC 20515-0548
Re: Act now to lower energy costs
Dear Representative ________:
High prices for energy are hurting me and my family and I strongly urge Congress to act immediately to lower costs for all Americans.
Rampant speculation in the commodities futures market is driving up prices out of proportion to marketplace demands. The problem is speculators are increasingly buying and selling commodities such as oil even though they have no intention of using the product. The unregulated speculators are pocketing billions of dollars at our expense. The cost of food has gone up, the price at the pump has gone way up, and I'm already concerned about how much more it will cost to heat my home this winter.
To lower oil prices for all Americans we need to increase domestic supply, exploration, alternative energy sources and conservation. We also must protect bona fide speculation and hedging.
To address excessive speculation, Congress should promptly take the following actions:
1. Re-establish strict position limits on energy commodities - Position limits have existed since 1936 and work well at curtailing excessive speculation. Any trader that is not hedging with the intention of taking physical delivery of a related commodity must be subject to strict position limits in all contract months.
2. Close the London Loophole - Foreign Boards of Trade with U.S. Terminals trading futures contracts that cash-settle against U.S. contracts should face the exact same regulations as U.S. exchanges. It is not fair for U.S. futures exchanges to face more regulation than their foreign counterparts trading in U.S. commodities.
3. Regulate "swaps trades" - All trades in the over-the-counter (OTC) swaps market must be subject to strict position limits. It is unfair to exempt swaps dealers from the same regulations that other market participants face. Experts have estimated the size of the OTC markets as nine or ten times larger than the futures markets.
4. Fully close the "Enron loophole" - "Exempt Commercial Markets" that trade U.S. contract which are nearly identical to fully regulated contracts should no longer be exempt from the same regulations that apply to Designated Commercial Markets such as the NYMEX.
5. Bring transparency to all energy trading - Positions of traders in all markets should be reported to the Commodity Futures Trading Commission (CFTC) and should be properly categorized based on where the trades occur and who is doing the trading. This will provide vital information that can be used to detect and prevent market manipulation.
Thank you for listening to my concerns. By adopting these common-sense solutions, Congress can dramatically reduce the price of oil and gas, providing immediate relief for businesses and families like mine.
Sincerely,
__________
http://www.stopoilspeculationnow.com makes it really easy to send either an email or a printed letter to your local congressman. You enter your address and they look up who represents you and their email address. Then the site generates a personalized letter for that representative you choose. They even send the email for you or you can print out a letter for mailing.
The following is the default letter that the site generates. You have an opportunity to edit the letter before it's sent so if you think that this is hooey and that market speculation has no effect on oil prices you can change the letter to express that point of view too.
The Honorable ________
House of Representatives
1728 Longworth House Office Building
Washington, DC 20515-0548
Re: Act now to lower energy costs
Dear Representative ________:
High prices for energy are hurting me and my family and I strongly urge Congress to act immediately to lower costs for all Americans.
Rampant speculation in the commodities futures market is driving up prices out of proportion to marketplace demands. The problem is speculators are increasingly buying and selling commodities such as oil even though they have no intention of using the product. The unregulated speculators are pocketing billions of dollars at our expense. The cost of food has gone up, the price at the pump has gone way up, and I'm already concerned about how much more it will cost to heat my home this winter.
To lower oil prices for all Americans we need to increase domestic supply, exploration, alternative energy sources and conservation. We also must protect bona fide speculation and hedging.
To address excessive speculation, Congress should promptly take the following actions:
1. Re-establish strict position limits on energy commodities - Position limits have existed since 1936 and work well at curtailing excessive speculation. Any trader that is not hedging with the intention of taking physical delivery of a related commodity must be subject to strict position limits in all contract months.
2. Close the London Loophole - Foreign Boards of Trade with U.S. Terminals trading futures contracts that cash-settle against U.S. contracts should face the exact same regulations as U.S. exchanges. It is not fair for U.S. futures exchanges to face more regulation than their foreign counterparts trading in U.S. commodities.
3. Regulate "swaps trades" - All trades in the over-the-counter (OTC) swaps market must be subject to strict position limits. It is unfair to exempt swaps dealers from the same regulations that other market participants face. Experts have estimated the size of the OTC markets as nine or ten times larger than the futures markets.
4. Fully close the "Enron loophole" - "Exempt Commercial Markets" that trade U.S. contract which are nearly identical to fully regulated contracts should no longer be exempt from the same regulations that apply to Designated Commercial Markets such as the NYMEX.
5. Bring transparency to all energy trading - Positions of traders in all markets should be reported to the Commodity Futures Trading Commission (CFTC) and should be properly categorized based on where the trades occur and who is doing the trading. This will provide vital information that can be used to detect and prevent market manipulation.
Thank you for listening to my concerns. By adopting these common-sense solutions, Congress can dramatically reduce the price of oil and gas, providing immediate relief for businesses and families like mine.
Sincerely,
__________
