House to Consider Oil Speculation Bill That Includes Provisions from Hill's Commodity Futures Restoration Act

Press Release

The U.S. House of Representatives is scheduled to consider this afternoon H.R. 6604, the Commodity Markets Transparency and Accountability Act, which contains provisions from Congressman Baron Hill's legislation, H.R. 6372, the Commodity Futures Restoration Act. Both bills are aimed at curbing excessive energy speculation that is artificially driving up the price of gasoline.

"Many economists have estimated that excessive speculation is adding between $20 to $50 to the price of a barrel of oil," Hill said. "We need to close loopholes and help reestablish oversight of the commodities markets to ensure that gas prices truly reflect the laws of supply and demand. I was pleased to be able to work with my colleagues in Congress on oil speculation legislation and am happy to see this bill up for consideration so quickly."

Since 2000, energy commodity trading has been systematically deregulated and new loopholes have been created that have fostered excessive speculation in U.S. commodity futures markets. H.R. 6044, as well as Hill's legislation, would further close this "Enron Loophole" and also help close the "London Loophole" that allows U.S. traders to be regulated by foreign entities. H.R. 6044 would bring much-needed transparency to commodities and futures markets and strengthen enforcement to prevent market manipulation.

"In recent years the energy futures market trading volume has increased six-fold," Hill said. "This is a clear indicator that more and more people are getting involved in actions that make a few very wealthy while seriously straining the budgets of American families."

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