“President Obama’s proposal to clamp down on oil speculation would give the federal government a direct role in how energy markets function and could actually make prices more volatile, analysts say.”
“The president, under pressure from rising gasoline prices, announced a $52 million plan Tuesday to strengthen federal supervision of oil markets, including forcing traders to put up more money when they bet on the direction of oil prices.”
“’Wall Street pours hundreds of billions of dollars into the commodity markets every month to speculate and that is causing prices to jump,’” Dennis Kelleher, president of Better Markets, a non-profit group that lobbies for more financial regulation, told CNBC.com in an email. “Until Wall Street index fund speculation is stopped, no one is being serious about stopping rising oil and gas prices.’”
Read full CNBC article here.