Energy Futures Legislation

On June 25, 2010, members of the U.S. House and Senate Conference Committee finalized the language for major financial reform legislation. The final version of the bill includes measures to close loopholes, increase transparency and establish position limits in the energy futures markets. It includes strict rules that prevent big banks from placing reckless bets on oil futures prices and to prevent greedy speculators from secretly buying and selling oil before it reaches consumers. This legislation would mean the end of casino-style trading and limit the ability of speculators to act as expensive middlemen in the oil markets.

As we went to press, the bill had passed both houses of Congress and was signed into law by the President. Despite passage of the bill, speculators can continue impacting oil markets until government regulators issue regulations implementing the new law. Unfortunately, it is believed it could take up to a year for these new regulations to take effect.

Members of the Coalition to Stop Oil Speculation Now and other supporters around the country sent nearly two million e-mails to elected officials, which had an enormous impact in helping to convince Congress to agree on legislation to stop the Wall Street manipulation of energy prices. Hopefully, now that the bill has become law, it will eventually help stop rampant speculation in energy futures once and for all.

For more information about this important legislation and its impact on oil prices, visit www.stopoilspeculationnow.com.