Monday, June 23, 2008
Speculators Helping To Hurt You At the Gas Pump
Experts speculate that anywhere from 30 - 50 percent of the $4 per gallon gasoline is due to, well, speculators. According to the Commodity Futures Trading Commission (CTFC), Wall Street dealers, hedge funds, pension funds and other speculators hold 70 percent of the oil futures traded in New York. Such speculation to generate short term profits is driving crude oil up towards $140 per barrel and gasoline to $4 per gallon and more. These speculators are not under tha same strict regulations imposed on other financial investors. Moreover, global speculation is also driving the prices up. The CTFC simply is not capable of controlling this speculation. People are becoming more aware of this situation as reporting on it educates the public.