Today, Congressman Joe Donnelly announced that he and colleagues sent a letter to the Chairman and Commissioners of the Commodity Futures Trading Commission (CFTC) to urge action to curb oil speculation. The letter calls on the CFTC to enforce strong position limits to eliminate excessive oil speculation, which is one of the main causes of higher gas prices. Excessive oil speculation currently contributes an additional $0.56 per a gallon according to a recent article in Forbes, which utilized data from a Goldman Sachs report.
"Gas prices are too high in Indiana," said Donnelly. "We need to ensure that Wall Street speculators aren't playing games with the oil markets, leading to financial harm to working families trying to afford the drive to the grocery store or baseball practice. I'll continue to put pressure on the CFTC to take action to end excessive oil speculation because high gas prices hurt our economic recovery."
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which Donnelly supported, required the CFTC to enact strong position limits to eliminate excessive oil speculation by January 2011, but the CFTC has yet to meet this requirement.