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Crude Oil Futures Speculator Crooks Drive Up Oil Prices and Cause Financial Crisis

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Guest Mason420

Wall Street firms such as Goldman Sachs Group Inc. and J.P. Morgan Chase & Co., market operators, the trading industry and their Washington lobbyists have blanketed the Capitol, urging lawmakers and their aides to take a much slower approach, one recommended by the Commodity Futures Trading Commission.

 

http://online.wsj.com/article/SB121573866230544661.html

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Guest Emily Barocas

Congressman John B. Larson, Vice Chair of the Democratic Caucus, along with Congressman Bart Stupak, Chairman of the House Energy and Commerce Subcommittee on Oversight and Investigations, sent a letter to President George Bush urging him to bring up the global problem of rising oil prices and particularly excess speculation at the G8 Summit. Because oil prices and speculation are a global problem, the signers of the letter believe that it can best be solved with cooperation across borders.

 

The letter states, "Without a comprehensive review of activities in the entire petroleum market, it is unlikely that a truly accurate assessment of speculative behavior and its impact on price can be made. This is particularly true in today's global economy, where strategic cooperation and coordination among nations is necessary to ensure stability and transparency in globally traded commodities."

 

Congressman Larson (CT-01) said, "The G8 Summit is the perfect forum to bring up an issue that is a top priority not just for us at home, but in countries across the globe. England's Prime Minister, Gordon Brown, called oil prices ‘a global shock" that requires ‘global solutions.' As Congress works hard to tackle this issue, I believe it is incumbent on this President to do what he can on the international stage as well."

 

Congressman Stupak (MI-01) said, "Whether an individual exchange closes in New York, London or Dubai, energy markets operate globally. While U.S. regulators must do their part to investigate and address the excessive speculation artificially inflating energy prices, this truly is a global problem that requires action from all of the key players in the global economy."

 

Please see below for the full text of letter.

 

 

June 30 2008

 

The President

 

The White House

 

Washington DC

 

Dear Mr. President:

 

The upcoming July 2008 G-8 Summit is an important opportunity to tackle the problem of rising oil prices on a global scale. We urge you to engage your counterparts in efforts to reduce global oil speculation and other questionable market activities that distort the supply and demand market equation and artificially distort the price of these commodities.

 

While we understand that global supply and demand issues as well as the weak U.S. dollar play a role in determining price - the fact remains that current supply and demand conditions do not add up to current market price increases. Speculation, in most cases by individuals that will never take a barrel of oil into inventory, is placing a distorted premium on the price of oil. This is evident by the nearly $240 billion growth in oil future investments since 2000. On March 4, 2008, Guy Caruso, Administrator of the Energy Information Administration testified before the Senate that speculation was currently adding as much as 10 percent to the price of oil, a relatively conservative estimate compared to some from the private sector. As far back as March 15, 2005, Exxon Mobile CEO Lee Raymond was quoted in the New York Times saying "We are in the mode where the fundamentals of supply and demand really don't drive the price." Three years later, during questioning in April 2008 before the House Select Committee on Energy Independence and Global Warming, Stephen Simon of Exxon Mobil cited speculation as one of the major causes of the exorbitant oil and gas prices we've seen, while executives from Shell, BP, Chevron, and ConocoPhillips agreed.

 

The U.S. is not alone facing the effects of the recent high spike in oil prices. On May 28, British Prime Minister Gordon Brown wrote in The Guardian that "a global shock on this scale require global solutions" and argued that a global strategy to address the impact of higher oil prices be on the agenda for this year's G-8 Summit. We agree with the need for greater international cooperation in bringing transparency to the global petroleum commodity and derivative markets and urge you to join with Prime Minister Brown and other G-8 leaders to discuss solutions to this critical issue.

 

The recent announcement by the Commodity Futures Trading Commission on May 29 that they have reached agreements with the United Kingdom Financial Services Authority (FSA) and the ICE Futures Europe for expanded information sharing on trading activities in regulated markets is a step in the right direction. However, this effort stops far short of bringing transparency to the currently unregulated markets. It ignores transactions currently excluded or exempted from CFTC oversight under Sections 2(g) and 2(h) of the Commodities Exchange Act. We remain concerned that it is impossible to draw realistic conclusions about market behavior when looking at only a fraction of the market.

 

Without a comprehensive review of activities in the entire petroleum market, it is unlikely that truly accurate assessment of speculative behavior and its impact on price can be made. This is particularly true in today's global economy, where strategic cooperation and coordination among nations is necessary to ensure stability and transparency in globally traded commodities. In the banking sector, the inter-governmental Financial Action Task Force (FATF) created at the 1989 G-7 conference to develop and promote national and international policies to combat money laundering and later terrorist financing has proved a successful model of international financial information exchange and policy development.

 

As you prepare for next month's G-8 summit, we urge you to discuss with your colleagues a similar effort focused on building international transparency in oil commodity transactions and developing policies to thwart speculative positioning or other manipulative behavior that impacts prices and undermines market fundamentals.

 

Sincerely,

 

Rep. John Larson

 

Rep. Bart Stupak

 

Rep. Betty Sutton

 

Rep. Jan Schakowsky

 

Rep. André Carson

 

Rep. Ruben Hinojosa

 

Rep. Bill Pascrell

 

Rep. Louise Slaughter

 

Rep. Tim Bishop

 

Rep. Jim Oberstar

 

Rep. Henry Waxman

 

Rep. Tammy Baldwin

 

Rep. Joe Courtney

 

Rep. Joe Donnelly

 

Rep. Dale Kildee

 

Rep. Hank Johnson

 

Rep. Bennie Thompson

 

Rep. Jerry Costello

 

Rep. Russ Carnahan

 

Rep. Mike Doyle

 

Rep. Jerry McNerney

 

Rep. Sheila Jackson Lee

 

Rep. Baron Hill

 

Rep. Maurice Hinchey

 

Rep. Chaka Fattah

 

Rep. John Yarmuth

 

Rep. Raúl Grijalva

 

Rep. Steve Rothman

 

Rep. Charlie Wilson

 

Rep. Diane Watson

 

Rep. Peter Welch

 

Rep. James Langevin

 

Rep. Lloyd Doggett

 

Rep. Phil Hare

 

Rep. Sam Farr

 

Rep. Paul Hodes

 

Rep. Neil Abercrombie

 

Rep. Betty McCollum

 

Rep. Dennis Kucinich

 

Rep. Michael Michaud

 

Rep. Xavier Becerra

 

Rep. Albio Sires

 

Rep. Ellen Tauscher

 

Rep. David Wu

 

Rep. Gene Taylor

 

Rep. Jason Altmire

 

Rep. Mike Honda

 

Rep. Hilda Solis

 

Rep. Carolyn McCarthy

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Guest Stop Speculation Now

President George Bush stated the leaders would discuss energy but played down any expectation that there will be any quick turnaround. "It took us a while to get into the energy situation we're in. It's going to take a while to get out of it," he said.

 

The Group of Eight industrialised countries(G-8) today backed Prime Minister Manmohan Singh's proposal for a forum to set up a dialogue between producers and consumers to stablise soaring oil prices which posed a "serious challenge" to world economic growth.

 

As the threat from spiralling inflation became the top economic concern for the G-8, their leaders voiced "strong concern" over sizzling oil prices and called for an increase in crude production and refining capacity to dampen the crude market.

 

"We express our strong concern about elevated commodity prices, especially of oil and food, since they pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and increase global inflationary pressure," the G-8 leaders said in a communique released on the second day of their three-day annual summit.

 

As a way to to enhance energy security, the leaders proposed an energy forum focused on energy efficiency and new technology to help a dialogue between producers and consumers.

 

Singh yesterday mooted a forum where producers and consumers can sit together to work out modalities to introduce a greater element of stability.

 

According to a Japanese official, some of the G-8 leaders also blamed speculation behind the doubling of oil prices to USD 140 a barrel, a point flagged by India at the recent emergency meeting of oil ministers in Jeddah.

 

The communique said that on the supply side, production and refinery capacities should be increased in the short term.

 

"Efforts are also necessary to expand upstream and downstream investment in the medium term," it said.

 

"There are fears oil prices could increase further. Some people fear they could reach $200 [u.S. a barrel]," Italian Prime Minister Silvio Berlusconi told reporters as he headed into the opening of the annual summit of eight leading industrialized countries, held this year on the northern Japanese island of Hokkaido.

 

Mr. Berlusconi said governments should target speculation in the crude oil markets by raising the margins investors are required to put down when they borrow to invest.

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Guest S.O.S

Record-high oil prices are hurting American families and damaging our nation’s economy. In response to this growing crisis, 38 organizations have joined together to push for effective short-, mid- and long-term solutions to help materially reduce unnecessarily high energy prices.

 

“This country is experiencing its worst energy crisis ever, driven by a confluence of factors, including a weak U.S. dollar, geopolitical tensions, limited supplies, strong global demand and the lack of a cohesive and comprehensive national energy policy,” ATA President and CEO James C. May said, speaking on behalf of all of the coalition members. “This crisis deserves the full attention of Congress – now – not next week, next month or next year. It is too important to wait. We believe that the fastest way to get oil prices under control in the short term is by reducing reckless and unfair speculation in the futures markets while, at the same time, enacting measures for the mid and long term to expand oil supplies, enhance efforts to advance alternative and renewable energy sources

and improve energy conservation across the board.”

 

“Without question, energy futures markets, when functioning with proper oversight, serve a useful purpose, especially to bona fide hedgers. But in today’s distorted market, rampant oil speculation is devastating both businesses and consumers,” the coalition asserts. “Reasonable financial controls and transparency, which have been eliminated at the urging of the big speculation market players, need to be reestablished,” said May.

 

“Numerous experts from around the world peg the impact of oil speculation at $20 to $60 per barrel. That translates into between $0.48 and $1.43 at the gas pump. In recent months, the number of ‘paper barrels’ traded by speculators has risen dramatically, peaking at 22 times the physical market on June 6, when crude oil shot up $11 in one session. Interestingly too, that spike came immediately on the heels of a prediction of $150 per barrel oil by one of the speculators with the most to gain by the increase.”

 

“Oil speculation has upset the traditional balance between supply and demand,” said Michael W. Masters, short equity hedge fund portfolio manager and founder of Masters Capital Management, LLC. “If Congress would pass meaningful speculation reform, oil prices would drop significantly within a matter of days or weeks.”

 

The Stop Oil Speculation Now coalition, in addition to its mid- and long-term supply and conservation elements, is calling for Congress to push for lower prices immediately by:

 

• Strengthening regulations weakened by the Enron Loophole and other loopholes

• Limiting the amount of oil that individuals or groups can trade speculatively in

the energy futures markets while unfairly driving up prices

• Requiring reporting by unregulated, secret markets like the swaps market: All

markets should have basic regulations that report the amount of oil people are

buying, no matter who they are or where they reside

• Make foreign traders follow U.S. rules and laws, just like everyone else who does

business in the United States

“This campaign will result in one million messages being sent to Congress in just the

last three days by concerned citizens mobilized by the SOS Coalition,” said May. “This

movement is just beginning to grow and we predict it will not stop until Congress acts.”

 

The Stop Oil Speculation Now coalition is a diverse and growing organization of industries, businesses, labor groups and ultimately concerned citizens united in support of responsible energy policies and prices. The coalition includes:

 

Members of the Stop Oil Speculation Now Coalition ABX Air, Inc.; Agricultural Retailers Association; Air Carrier Association of America; Aircraft Owners and Pilots Association; Air Line Pilots Association, International; AirTran Airways; Air Transport Association; Alaska Airlines, Inc.; American Airlines, Inc.; American Association of Airport Executives; American Bus Association; American Trucking Associations; Association of Corporate Travel Executives; ASTAR Air Cargo, Inc.; Atlas Air, Inc.;

Cargo Airline Association; Continental Airlines, Inc.; Delta Air Lines, Inc.; Evergreen International Airlines, Inc.; Federal Express Corporation; Frontier Airlines, Inc.; Gasoline & Automotive Service Dealers of America; Hawaiian Airlines; JetBlue Airways Corp.; Midwest Airlines; National Business Travel Association; National School Transportation Association; Northwest Airlines, Inc.; Petroleum Marketers Association of America; Regional Airline Association; Southwest Airlines Co.; Spirit Airlines, Inc.; TripplerTravel.com; International Brotherhood of Teamsters; United Airlines, Inc.;

United Motorcoach Association; UPS Airlines; and US Airways, Inc.

 

To learn more about oil speculation and its effects on America’s economy, or to tell your member of Congress now that you demand action, now, please visit

 

www.StopOilSpeculationNow.com

 

CONTACT:

Elizabeth Merida

202-626-4205

Victoria Day

202-626-4141

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Guest drc

Malaysia's prime minister wants the world to consider suspending oil futures trading to prevent speculation. German leaders are calling for an outright ban on oil speculation. And a US congressional investigation into the price surge may be tilting toward nailing speculation as the main culprit.

 

It's time to ask ourselves if we can really afford speculation in critical commodities like oil. Allowing the market to decide oil prices is fine, but let that market be composed only of people who are actually buying and selling oil. Sorry, uncles, you don't belong there, so stop making my life miserable.

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Guest Keith Rhodes

Wonderful to hear the truth, instead of the spin that we here in our media! Thanks for your effort!

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Guest Magee

Is it possible that gambling on oil futures might be a temptation for banks that are already underwater from a trillion dollars worth of mortgage-related deals that have gone south?

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According to “The Economist” there is a debate as to why oil prices keep increasing. “speculators are responsible for a big part of the commodity price increases” is one out look and the other side argues that “the price is bound to keep rising indefinitely, since supplies of oil are running short.”

After reading all of these posts on this message board I have found that many people believe that “oil running short” is bogus and just a way to get people to invest in the oil market.

I had over-viewed many hypothetical solutions to decreasing gas prices and find some of them to be far fetched. I for one am a strong believer in low gas prices because I drive a car just like everyone else, but I am also a believer of being realistic in our ideas for solutions.

Take this idea for example, “We need to immediately stop putting oil underground into the Strategic Petroleum Reserve, and start addressing the fundamental issue of these sky-high prices by cracking down on the rampant speculation that’s driving up the price of energy.” Sure it sounds like an easy way out, but if you really think about it, what happens when we need that reserved oil. I know you cannot tell me specifically how much oil is reserved so you can’t really make an assumption off of nothing. What if a national attack happens and we need that oil? Its solutions like this that makes gas prices remain at an increase.

I think a more realistic solution would be to limit the amount of barrels or people allowed for speculation. The less investors we have piling into oil markets, the lower gas prices will be. Congressman Maurice Hinchey has already passed the Prevent Unfair Manipulation of Prices Act (PUMP) as at least a step in the right direction.

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I did not know that banks were also involved in the commodity market exchange scandal? Can you tell me which ones? I don't want to have my money in that bank.

 

I believe a few are Goldman Sachs or Morgan Stanley. To specify, these banks are Oil Trading Banks.

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Guest hawaiianair

An Open letter to All Airline Customers:

 

Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now.

 

For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers.

 

Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.

 

Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.

 

Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.

 

The nation needs to pull together to reform the oil markets and solve this growing problem.

 

http://www.hawaiianair.com

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Guest Markets Control Media

Has anyone noticed that the media's interest in the Intercontinental Exchange has declined sharply this week. The Republicans have distracted numerous proposals in Congress to rein in trading speculation within the commodities markets to now drilling off the Florida Coast. We had speculators scared and the price of oil dropped dramatically. It is likely that any legislation passed will take the form of limited transparency and improved reporting rather than margin hikes or the curtailment of pension/index fund involvement in the commodities markets. Congress compromised again with our economic future.

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Guest M R Venkatesh

Most economists believe that price and demand are inversely related. But in real world, it need not be so. That is because economists do not take into account the impact of collective psychology, which is difficult to predict. For instance, when prices rise, more people are tempted to buy more shares of that particular company in anticipation of greater price increases.

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Guest letsgo

As far as I know, Futures markets act as price discovery mechanisms. Futures prices do affect spot prices. But to what extent no one knows. Buyers consider fundamentals like future supply-demand & other factors to arrive at a consensus on the futures price. In the case of oil, the puzzle is the steep increase in price, over a short period of time, with not so much of a change in demand-supply. A lot of people answer this puzzle by blaming it on speculators. Some say it is demand from India & China. To me it seems to be an open question.

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Guest Wes

The UAE racked up a non-oil trade deficit of $409 billion between 2003 and last year, suggesting that the country’s economy could be in trouble if the oil futures rug is suddenly pulled out from under it.

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Guest Enron Ex
The UAE racked up a non-oil trade deficit of $409 billion between 2003 and last year, suggesting that the country’s economy could be in trouble if the oil futures rug is suddenly pulled out from under it.

 

The UAE long-term urban development plan through to 2030, is predicated on an oil price well below $100 a barrel, so would not be threatened by a price drop of 50 per cent from current levels.

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Guest Jesselee

The U.S. Senate on Tuesday voted overwhelmingly to open debate on a bill to rein in energy market speculation blamed for high oil and gasoline prices. The motion to go ahead with debate was approved 94 to 0, and the legislation requires another vote before it clears the Senate.

 

Strengthening regulation of the futures market is a worthwhile piece of any legislative effort, but let’s be clear from the outset: it’s just a piece—and a small piece at that. - Senator Mitch McConnell ®

 

The energy futures market has been broken with unbridled speculation, and the result is oil and gas prices that are shooting up like a Roman candle - Byron L. Dorgan ®

 

We believe that speculation does cause some volatility in the day-to-day market fluctuations of oil prices. But we believe that the root causes of high energy prices is supply and demand. - White House Press Secretary Dana Parino

 

It looks like the Republicans and the White House will allow Democrats to regulate energy market speculation if the Democrats allow more offshore oil drilling.

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Guest BlingBling_*
The U.S. Senate on Tuesday voted overwhelmingly to open debate on a bill to rein in energy market speculation blamed for high oil and gasoline prices. The motion to go ahead with debate was approved 94 to 0, and the legislation requires another vote before it clears the Senate.

It looks like the Republicans and the White House will allow Democrats to regulate energy market speculation if the Democrats allow more offshore oil drilling.

 

 

Democratic members of Congress have no Super Majority and therefore can't do anything to change things unlike Republicans who had a Majority and the President's pen and COULD have done something when they had power. Vote Democrat this November, so we can restore faith back in our government.

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Guest Pastor

John Cornyn (R-Tex.) responded that Democrats have indicated that excessive energy commodities speculation represents only about 20% of the oil price problem. "Why aren't we addressing the other 80%?

 

Pete V. Domenici (R-NM), the Energy and Natural Resources Committee's ranking minority member, said that Republicans will insist that other issues be addressed.

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Guest LAW_*

00183 22-Jul S. 3268 On Cloture on the Motion to Proceed

Motion to Invoke Cloture on the Motion to Proceed to S. 3268; Stop Excessive Energy Speculation Act of 2008

Agreed to

 

Yes

 

Grouped By Vote Position YEAs ---94

Akaka (D-HI)

Allard (R-CO)

Barrasso (R-WY)

Baucus (D-MT)

Bayh (D-IN)

Bennett (R-UT)

Biden (D-DE)

Bingaman (D-NM)

Bond (R-MO)

Boxer (D-CA)

Brown (D-OH)

Brownback (R-KS)

Bunning (R-KY)

Burr (R-NC)

Byrd (D-WV)

Cantwell (D-WA)

Cardin (D-MD)

Carper (D-DE)

Casey (D-PA)

Chambliss (R-GA)

Clinton (D-NY)

Coburn (R-OK)

Cochran (R-MS)

Coleman (R-MN)

Collins (R-ME)

Conrad (D-ND)

Corker (R-TN)

Cornyn (R-TX)

Craig (R-ID)

Crapo (R-ID)

DeMint (R-SC)

Dodd (D-CT)

Dole (R-NC)

Domenici (R-NM)

Dorgan (D-ND)

Durbin (D-IL)

Ensign (R-NV)

Enzi (R-WY)

Feingold (D-WI)

Feinstein (D-CA)

Graham (R-SC)

Grassley (R-IA)

Gregg (R-NH)

Harkin (D-IA)

Hatch (R-UT)

Hutchison (R-TX)

Inhofe (R-OK)

Inouye (D-HI)

Isakson (R-GA)

Johnson (D-SD)

Kerry (D-MA)

Klobuchar (D-MN)

Kohl (D-WI)

Kyl (R-AZ)

Landrieu (D-LA)

Lautenberg (D-NJ)

Leahy (D-VT)

Levin (D-MI)

Lieberman (ID-CT)

Lincoln (D-AR)

Lugar (R-IN)

Martinez (R-FL)

McCaskill (D-MO)

McConnell (R-KY)

Menendez (D-NJ)

Mikulski (D-MD)

Murkowski (R-AK)

Murray (D-WA)

Nelson (D-FL)

Nelson (D-NE)

Pryor (D-AR)

Reid (D-NV)

Roberts (R-KS)

Rockefeller (D-WV)

Salazar (D-CO)

Sanders (I-VT)

Schumer (D-NY)

Sessions (R-AL)

Shelby (R-AL)

Smith (R-OR)

Snowe (R-ME)

Specter (R-PA)

Stabenow (D-MI)

Stevens (R-AK)

Sununu (R-NH)

Tester (D-MT)

Thune (R-SD)

Vitter (R-LA)

Voinovich (R-OH)

Warner (R-VA)

Webb (D-VA)

Whitehouse (D-RI)

Wicker (R-MS)

Wyden (D-OR)

 

Did not Vote - 6

 

Alexander (R-TN)

Hagel (R-NE)

Kennedy (D-MA)

McCain (R-AZ)

Obama (D-IL)

Reed (D-RI)

 

Mrs. MURRAY. Mr. President, I ask unanimous consent that following the cloture vote on S. 3268, and if cloture has not been invoked, and the Senate has subsequently invoked cloture on the motion to concur in the House amendment to the Senate amendment to the House amendments to the Senate amendment to H.R. 3221, then postcloture debate time on Friday, July 25, be divided in 30-minute blocks, beginning at 10 a.m., and until 1 p.m., and as specified in a subsequent order; with postcloture time running during any recess or adjournment of the Senate; that when the Senate convenes on Saturday, July 26 at 9 a.m., after the opening of the Senate, the time until 11 a.m. be equally divided and controlled by the leaders or their designees, with the time from 10:40 a.m. to 10:50 a.m. controlled by the Republican leader, and the time from 10:50 a.m. to 11 a.m. controlled by the majority leader; that at 11 a.m., all postcloture time be yielded back, the Senate proceed to vote on the motion to concur in the House amendment to the Senate amendment to the House amendments to the Senate amendment to H.R. 3221; that if the motion is successful, the motion to reconsider be laid upon the table and the motion to concur with an amendment be withdrawn; further, that if cloture is invoked on S. 3268, then the provisions of this agreement be null and void.

 

The PRESIDING OFFICER. Without objection, it is so ordered.

 

Mrs. MURRAY. Mr. President, I suggest the absence of a quorum.

 

The PRESIDING OFFICER. The clerk will call the roll.

 

The assistant legislative clerk proceeded to call the roll.

 

Mrs. MURRAY. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

 

The PRESIDING OFFICER. Without objection, it is so ordered.

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Guest Georgetown Alumni

Hello everyone,

The energy markets took a much-needed breather and retracement. Since the oil market was reaching unsustainable heights, this was bound to happen, and it did.

 

http://finance.google.com/finance?q=NYSE%3AOIL

 

Whether it continues to regain its lost ground and make newer all-time highs is yet to be seen, but it is still driving all the other commodities markets at this time.

 

Crude oil topped out at $147.27 /barrel (August futures contract) on July 11 and hit a low of $128.23 on July 18, knocking $19/barrel off its price. That equates to a dollar value of $19,000 on one futures contract. It currently sits at the $130.50 mark and is looking to make some consolidation here.

 

This chart shows it all.

 

http://futuresource.quote.com/charts/charts.jsp?s=CL%20Q8

 

Hope this information helps.

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Guest Trader

The time has come to free oil prices from speculators. These simple solutions are politically impossible in the Senate.

 

Close down futures exchanges

Ban or restrict non-commercial’s paper barrel trading

Oblige physical delivery rather than cash settlement.

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Guest RoadBlockRepublicans.com

The Senate voted Wednesday to move forward on a bill meant to crack down on oil speculators.

 

But Republicans vowed to block the Senate from taking up any other measure until the Democratic

 

Why Republicans make you spend twice as much at the pump.

 

Having utterly discredited itself on national security, the economy, morality and every other conceivable issue, The Republican Party is purposefully permitting the inflation of gas prices in the hope of making domestic drilling a winning campaign issue. Speculation, perhaps more than actual demand, has caused the dramatic increase in fuel costs since February as institutional investors -- not those who intend to use petroleum -- now account for 73% of all crude oil trading contracts. Even the oil companies think the market has drastically over-valued the price of oil, yet Roadblock Republicans just voted against legislation to curb such market manipulation.

 

Unless the Republicans are thinking of nationalizing our oil, the product of increased domestic drilling would conceivably lower the price of a gallon of gasoline by a few cents when it entered the world market ten years or so from now, but that market would be subject to the same speculation and manipulation it is today, maybe more, as institutional investors accounted for only 37% of crude oil contracts in 2000.

 

12 Roadblock Republican Senators facing re-election voted against the anti-speculation measure: Lamar Alexander (R-Tennessee), John Barrasso, (R-Wyoming), Saxby Chambliss (R-Georgia), Norm Coleman (R-Minnesota), John Cornyn, (R-Texas), Elizabeth Dole (R-North Carolina), James Inhofe (R-Oklahoma), Mitch McConnell (R-Kentucky), Pat Roberts (R-Kansas), Gordon Smith (R-Oregon), John Sununu (R-New Hampshire), and Roger Wicker (R-Mississippi).

 

post-2502-1217209438_thumbjpg

 

We all have to suffer so these guys (and Elizabeth Dole) can falsely blame Democrats for high fuel prices. Now that's manipulation.

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Guest BlingBling_*
12 Roadblock Republican Senators facing re-election voted against the anti-speculation measure: Lamar Alexander (R-Tennessee), John Barrasso, (R-Wyoming), Saxby Chambliss (R-Georgia), Norm Coleman (R-Minnesota), John Cornyn, (R-Texas), Elizabeth Dole (R-North Carolina), James Inhofe (R-Oklahoma), Mitch McConnell (R-Kentucky), Pat Roberts (R-Kansas), Gordon Smith (R-Oregon), John Sununu (R-New Hampshire), and Roger Wicker (R-Mississippi).

 

We all have to suffer so these guys (and Elizabeth Dole) can falsely blame Democrats for high fuel prices. Now that's manipulation.

 

The REPUBLICANS are trying to stop this from being fixed. If we have 10$/gallon gas it will be because McCain is the next president and his top dog, his financial advisor, the one and only TEXAS REPUBLICAN SENATOR who introduced the loophole, will be deciding your country's economic policies. TREASON!

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