WASHINGTON, D.C. (SDJW)–Initiatives were announced on Thursday, June 26, in both the Senate and the House of Representatives to curb the ability of oil companies and speculators to force up gasoline prices in response to crises such as the one now occurring in Iraq.
Senator Bernie Sanders was joined by 14 other Democratic senators– including fellow Jewish members Richard Blumenthal of Connecticut, Ben Cardin of Maryland, Al Franken of Minnesota, Carl Levin of Michigan, and Brian Schatz of Hawaii — in introducing the legislation. Among three co-sponsors of a companion bill in the House was Jewish member David Cicilline (D-Rhode Island).
Sanders’ legislation would force the Commodity Futures Trading Commission, the federal agency that regulates oil markets, to use to use all of its authority, including its emergency powers, to eliminate excessive oil speculation.
“I am getting tired of big oil companies and Wall Street speculators using Iraq as an excuse to pump up oil and gas prices,” said Sanders, a member of the Senate energy committee. “The fact is that high gasoline prices have less to do with supply and demand and more to do with Wall Street speculators driving prices up in the energy futures market.”
“There is no logical reason why gas prices should continue to rise if oil supplies are up and demand is down. Big Oil and Wall Street speculators are preying on Americans’ pocketbooks and it’s just wrong,” said Senator Cardin, member of the Senate Finance Committee. “Using the ongoing conflict in Iraq and every other geopolitical excuse possible to increase profits is a truly disappointing tactic to artificially inflate the price of oil. Our bill reins in the excessive and malicious speculation that should have no place in the market.”
“Rhode Island families are already feeling the pain at the pump, and we cannot continue to allow Wall Street to artificially drive up the price of oil,” said Cicilline. “Excessive oil speculation spikes gas prices and hurts middle class families. I will keep fighting for common-sense solutions to protect Rhode Island consumers by ending these outrageous practices on Wall Street.”
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Other cosponsors of the Senate bill include Tammy Baldwin (D-Wis.), Sherrod Brown (D-Ohio), Mazie Hirono (D-Hawaii), Amy Klobuchar (D-Minn.), Joe Manchin (D-W.Va.), Ed Markey (D-Mass), Claire McCaskill (D-Mo.), Jeff Merkley (D-Ore.), Bill Nelson (D-Fla.), Jay Rockefeller (D-W.Va.). Jeanne Shaheen (D-N.H.), and Sheldon Whitehouse (D-R.I.) The House bill is co-sponsored by Rosa DeLauro (D-Connecticut) and Raul Grijalva (D-Arizona)
Sanders said that Wall Street has pushed up the price of crude oil by more than 5 percent since June 12, when militants attacked and took control of several Iraqi cities. In the longer term, oil prices rose 53 percent since 2009. While developments in Iraq have had no impact on the supply of gasoline in the United States today, gas is more expensive now than it’s been in six years at the beginning of the summer driving season, according to AAA. The increase has occurred despite the fact that the supply of gasoline is 4.3 percent higher and demand is 1 percent lower than it was five years ago, when national gas prices averaged $2.69 a gallon.
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Preceding provided by Senators Sanders and Cardin, and by Representative Cicilline
Whenever there are fears of shortages, psychological factors drive up prices; even if not totally justified. It’s the same with oil or any other commodity. Notice that all the sponsors are Democrats. Permitting speculation helps insure a plentiful supply by allowing speculation. Denying that may be bring oil shortages.