Tuesday, April 17, 2012

Obama To Curb Oil Market


The Obama administration proposed new measures Tuesday to limit speculation in the oil markets, seeking to draw a contrast with Republicans who have been calling for more domestic drilling during a time of near record gasoline prices, CNN reports.

The new proposals require oil traders to put up more of their own money for transactions, ask for more money for market enforcement and monitoring activities, and call for higher penalties for market manipulation.

"None of these will bring gas prices down overnight," Obama said at a White House press. "But they will prevent market manipulation, and help protect consumers."

The impact that speculation, or investment money, is having on oil prices is a subject of much debate.  Many argue that investment money, especially index fund money, is largely to blame for the spike in oil prices….

No comments:

Post a Comment