Bill would rein in trading in energy futures

San Francisco Chronicle by Zachary Coile | Jun. 14, 2008 (News Report)

...Congress is preparing to rein in speculative trading in energy futures markets by major institutional investors and hedge funds, which is seen as a key factor in driving up oil prices.

Legislation introduced Friday by Sens. Dianne Feinstein, D-Calif., and Ted Stevens, R-Alaska, would require the Commodity Futures Trading Commission to set limits on how much these investors - including pension and retirements funds - can invest in certain ... Full Story »

Posted by Beth Wellington

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2.8

by M. Simon - Oct. 1, 2008

I think the story under emphasized the main point. Congress is intent on regulating (by inquiry) something it admits it doesn't understand. The story also leaves out the global aspects of regulation. It has nothing to say about global markets. Only American ones. It also makes no note of supply and demand (the underlying forces at work). They leave out Congress' role in limiting American supplies of oil. No mention is made of speculation's role in bringing more supplies on line. I'd rate the article good on political details, bad on economics.