The Hill News

The latest spike in oil prices is further evidence that our energy markets are no longer governed by actual supply and demand.  Speculators, again, are seizing on political turmoil to drive the price of oil to unwarranted levels.  This time, it’s Egypt and Libya.

Data from the Commodity Futures Trading Commission (CFTC) reveals that just since the protests began in Egypt in January speculators have increased their betting on future oil price increases by more than 35 percent, while legitimate hedgers have reduced their holdings of oil futures by more than 20 percent.  The loser in this game of profit-gouging by speculators is the American consumer.  Higher gasoline prices mean less money for other thing! s.  And at the end of the day, the big loser is America’s economy.

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