Sen. Nelson speaks out on speculation, foreign oil, and high gas prices

Senator Bill Nelson (D-FL) discussed high gas prices and the role of speculators today in a Politico op-ed.  It is important to note that Senator Nelson is supportive of the ability of legitimate end-users, like the aviation industry, to utilize legitimate hedging practices to help control our fuel costs.  However, on the topic of Wall Street speculators the Senator writes:

“This is gambling by a new brand of oil trader that has emerged in just the past decade. These speculators are middle men of sorts, who buy oil futures contracts and flip them like they were condominiums just to get the quick profit.  One statistic is really telling: The share of the oil market controlled by speculators has more than doubled over the past 10 years. At the same time, gas has gone from $1.56 a gallon to an average of $3.90 or more a gallon.”

Full article here

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One Response to Sen. Nelson speaks out on speculation, foreign oil, and high gas prices

  1. Jenise Arvan says:

    You can expect gas prices to rise every spring. It seems to get earlier and earlier each year. That’s because oil futures traders know demand for gas rises in the summer. They therefore start buying oil futures contracts in the spring in anticipation of that price rise.*

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