Post by AskTheWiseOldMan on Jul 7, 2008 14:36:25 GMT -4
I sent an email asking the Senator to push for limiting oil futures speculation only to those actually able to take delivery on the contracts. After receiving one auto-reply last week I thought it was over ... then this came today. Except for the redaction of my identity, the letter is copied and pasted.
----- Original Message -----
From: Saxby Chambliss
To: *************
Sent: Monday, July 07, 2008 10:36 AM
Subject: Responding to your message about Oil Speculators
Dear ************
Thank you for contacting me about the impact of high fuel prices and, in particular, speculation in the energy trading markets and the impact these issues are having on U.S. consumers and airlines.
I share your concerns about the numerous factors affecting the price of crude oil, including supply and demand, the weak dollar, the need for increased conservation, and the development of alternative sources of energy.
Moreover, I am particularly troubled about any role that speculation is having in unduly inflating the price of oil or any commodity for that matter.
I am working with my colleagues in a bipartisan manner to develop real solutions to many of these issues. They include increased supply through discovery and environmentally sensitive exploration, improved conservation, and a common-sense assessment and application of regulations necessary for investors, traders, and speculators in all commodities including the energy markets.
With respect to the energy markets, I am leading a bi-partisan effort to develop legislation to ensure that American consumers, Congress, and the regulator of the futures markets, the Commodity Futures Trading Commission (CFTC), can more accurately determine the impact of speculation in the energy market.
One of the major issues in determining how speculation affects the price of crude oil is understanding which market participants are truly speculators investing in paper and which investors are investing in the commodity.
For example, because dealers/brokers often conduct business for a variety of market participants, we must insist that the CFTC segregate and re-classify data to ensure that trades on behalf of truly commercial interests, such as airlines, are not classified in the same category as those trades (perhaps initiated by the same dealer/broker) for index funds.
Additionally, we must seek to ensure that the CFTC has the proper tools to better monitor and enforce any wrong-doing in these markets, and we should ensure that boards of trade located outside of the United States that conduct business on computer or video screens in the U.S. have adequate position limitations and reporting requirements.
Your comments are important to me and I happen to agree with you. As we develop the legislation in the Agriculture Committee and other Committees in the Senate and as the legislation goes to the Senate floor for debate and votes, I will keep your views in mind.
Saxby
----- Original Message -----
From: Saxby Chambliss
To: *************
Sent: Monday, July 07, 2008 10:36 AM
Subject: Responding to your message about Oil Speculators
Dear ************
Thank you for contacting me about the impact of high fuel prices and, in particular, speculation in the energy trading markets and the impact these issues are having on U.S. consumers and airlines.
I share your concerns about the numerous factors affecting the price of crude oil, including supply and demand, the weak dollar, the need for increased conservation, and the development of alternative sources of energy.
Moreover, I am particularly troubled about any role that speculation is having in unduly inflating the price of oil or any commodity for that matter.
I am working with my colleagues in a bipartisan manner to develop real solutions to many of these issues. They include increased supply through discovery and environmentally sensitive exploration, improved conservation, and a common-sense assessment and application of regulations necessary for investors, traders, and speculators in all commodities including the energy markets.
With respect to the energy markets, I am leading a bi-partisan effort to develop legislation to ensure that American consumers, Congress, and the regulator of the futures markets, the Commodity Futures Trading Commission (CFTC), can more accurately determine the impact of speculation in the energy market.
One of the major issues in determining how speculation affects the price of crude oil is understanding which market participants are truly speculators investing in paper and which investors are investing in the commodity.
For example, because dealers/brokers often conduct business for a variety of market participants, we must insist that the CFTC segregate and re-classify data to ensure that trades on behalf of truly commercial interests, such as airlines, are not classified in the same category as those trades (perhaps initiated by the same dealer/broker) for index funds.
Additionally, we must seek to ensure that the CFTC has the proper tools to better monitor and enforce any wrong-doing in these markets, and we should ensure that boards of trade located outside of the United States that conduct business on computer or video screens in the U.S. have adequate position limitations and reporting requirements.
Your comments are important to me and I happen to agree with you. As we develop the legislation in the Agriculture Committee and other Committees in the Senate and as the legislation goes to the Senate floor for debate and votes, I will keep your views in mind.
Saxby