WASHINGTON, July 21 /PRNewswire-USNewswire/ -- In a letter to the House
and Senate Congressional leadership today, Consumers for Competitive Choice
(C4CC) President Robert Johnson called for immediate Congressional
intervention to restrain oil speculation.
"Consumers are reeling from record high energy prices and daily swings
that make it difficult to even budget for increased expenses. In this time
of real economic pain, oil profiteering by some threatens to complicate
further the plight of American consumers unless you act quickly. Further
oil speculation by traders will cause the price of commodities to rise over
what market fundamentals dictate. The time has come for Congress to act
decisively to curb profiteering oil speculation," Johnson said.
As consumer prices rise at astounding rates, experts overwhelmingly
attribute the phenomenon to rising energy costs. The stability of the
American economy has always been due in part to reliable oil prices set by
supply-and-demand. But oil speculation is essentially creating a new energy
tax on American businesses and consumers.
Johnson's letter noted that the oil speculators of today are different
than the businesses that originally purchased oil futures to plan for their
energy consumption costs over a period of time. In fact, a barrel of oil in
today's market may be traded more than 20 times before being delivered and
used, driving up prices for everyone.
"Manipulative speculation practices have placed artificial pressures on
the market place, causing an increase in energy prices that is
unprecedented. Unless Congress acts now, hundreds of billions of dollars
will continue to flood futures markets and drive energy prices even higher.
Oil prices have more than doubled in the last year, rising by about $70 per
barrel - an unsustainable expense for American workers and businesses,"
Johnson said.
The letter also highlighted two bills currently under consideration -
S. 3268, the Stop Excessive Energy Speculation Act of 2008 and HR 6330, the
Prevent Unfair Manipulation of Prices (PUMP) Act - as effective first steps
in addressing the problem.
For more information about C4CC and oil speculation, visit
http://www.consumers4choice.org.
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