Gordon Votes To Curb Speculation Into Energy Markets

July 30, 2008, WASHINGTON – U.S. Rep. Bart Gordon voted today (July 30) to end the widespread speculation in energy markets that experts say could be driving oil prices up by as much as $40 per barrel.

“Consumers need relief from high gas prices,” said Gordon. “Curbing speculation in energy markets will help American consumers. It is an important part of a comprehensive strategy that includes increasing domestic production, conserving energy and investing in alternative energy sources.”

H.R. 6604, would have given the Commodity Futures Trading Commission the flexibility it needs to curtail excessive speculation and other practices distorting the energy market. It would bring transparency to commodities and futures markets, and strengthen enforcement to prevent market manipulation and to prosecute fraud. Despite receiving bipartisan support from a majority of voting members, the bill failed because it did not receive required approval by two-thirds of the U.S. House of Representatives.

“It’s a shame that some members of Congress initially voted for this bill and then switched their votes at the last minute to prevent it from passing,” said Gordon. “It’s a shame partisan politics got in the way of bringing relief to consumers struggling to cope with high gas prices.”

Speculators buy and sell futures contracts that require delivery of a commodity at a specified price on a specified future date. Some unscrupulous oil speculators are betting the price of oil will increase. Their excessive trading is driving up the price in the market.

An official with the Commodity Futures Trading Commission testified last month that speculation is driving oil prices up by more than $40 per barrel, or about $1 per gallon of gasoline.