Why gas is going up with excess supply

[Jack Flash]

http://news.firedoglake.com/2011/05/25/ ... on-scheme/

A story that has been swept under the rug. There was a time in this country when investigative journalists from would have been all over this story.

http://www.bloomberg.com/news/2011-10-1 ... ation.html

The rule has been among the most controversial provisions of the Dodd-Frank financial overhaul, enacted last year, which gave the Commodity Futures Trading Commission the authority to limit trading in over-the-counter commodity swaps as well as exchange-traded futures. The rule will limit the number of contracts a single firm can hold.

The rule limits a trader to 25 percent of deliverable supply in the month nearest to delivery.

In other words three firms could control 75% of the deliverable oil supply.

http://thinkprogress.org/green/2011/10/ ... tion-rule/

Sens. Bernie Sanders (I-VT) and Maria Cantwell (D-WA) both wrote letters to CFTC Commissioner Gary Gensler, asking him to take stronger steps to curb financial speculators like Goldman Sachs and Morgan Stanley.

But all in all, there was very little opposition. Democrats voted for this bill.
Republicans voted against it -but only because they did not want any regulation.

This is why wall street gives money to both sides in politics. And just so you know speculation activity has increased recently.

[cerina]

It's always been the same. The only reason the prices are so high is because speculators decided it was a good way to make money. The cost of production hasn't increased enough to make the charges justifiable, that's purely down to market speculation.