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Crude Speculation

The recent, wild swings in oil prices have caught the attention of the Commodity Futures Trading Commission. The agency is concerned the lack of stability in prices is a result of speculation. And, as NBR's Darren Gersh reports in tonight's program, the CFTC is now considering changing trading limits to curb speculation in all futures markets. Learn more about the CFTC and futures markets below.

Related NBR Stories & Links

• 06-03-09: What's Fueling Rising Oil Prices?
• 06-17-08: The CFTC Heads to the Hill to Announce an Oil Agreement
• 05-30-08: CFTC Chairman Walter Lukken Offers his Ideas About Rising Oil Prices
• 04-08-08: "XChange, the NBR Blog" - Commodity Index Funds: The Interlopers?

External Links/Articles*

• Futures Industry Association (FIA)
  The FIA represents firms active in the exchange-traded derivatives markets. The organization's president, John Damgard, is interviewed in Darren Gersh's report. This links to the home page of the FIA website which currently features a response to the July 7, 2009 statement made by Gary Gensler, the chairman of the CFTC.
• Harvard University
  This links to a July 25, 2008 entry in "Jeffrey Frankel's Weblog." Frankel is a Professor of Capital Formation and Growth in Harvard University's John F. Kennedy School of Government. His blog entry is titled, "Commodity Prices, Again: Are Speculators to Blame?"
• Institute of Agriculture and Trade Policy (IATP) (PDF Document)
  The IATP "works with organizations around the world to analyze how global trade agreements impact domestic farm and food policies." This links to a copy of a March 24, 2009 letter the IATP and more than 180 U.S. and international organization sent to President Barack Obama an other congressional leaders to ask that excessive speculation be removed from the food an energy commodities markets.
• International Monetary Fund (IMF) (PDF Document)
  The International Monetary Fund (IMF) is an international organization that promotes "monetary cooperation, exchange stability, and orderly exchange arrangements; fosters economic growth; and provides temporary financial assistance to countries to help ease balance of payments adjustment." This links to Chapter 5 of the IMF's 2006 World Economic Outlook report. The Chapter is titled, "The Boom in Nonfuel Commodity Prices: Can It Last?" Page 15 of the report includes data gathered in response to the question, "Has Speculation Contributed to Higher Commodity Prices?"
• The Oil Drum
  The Oil Drum is a blog promoting "discussion about energy and our future." One of the site's editors, Nate Hagens, is interviewed in Darren Gersh's report. This links to a list of stories authored by Nate Hagens.
• U.S Commodity Futures Trading Commission (CFTC) (PDF Document)
  The CFTC is "an independent agency with the mandate to regulate commodity futures and option markets in the United States." This links to a July 7, 2009 statement released by the CFTC titled, "Statement by Chairman Gary Gensler on Speculative Position Limits and Enhanced Transparency Initiatives." It includes a discussion of public hearings the CFTC plans to hold to gather comments on speculative trading in the markets.
• U.S. Representative Bart Stupak
  Congressman Bart Stupak (D - Michigan) is Chairman of the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee. He is interviewed in Darren Gersh's report. This links Stupak's discussion of gas prices and speculation in the trading of energy commodities.

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.