Tags: Dorgan | Gasoline | Prices | Justification

Former Senator Dorgan: ‘There Is No Justification’ for High Gas Prices

Friday, 30 Mar 2012 07:58 AM

Speculators are to blame for climbing oil and gasoline prices and not rising global demand or tensions with Iran, a former Senator says.

U.S. gasoline prices are averaging $3.92 a gallon and are climbing, well before the normal peak summer season, when more driving increases in the U.S. and refineries switch to more expensive blends.

Tensions with Iran have pushed up prices, many experts claim, plus big countries like China and India are growing and need more oil to expand.

Editor's Note: Google Banned This Video But You Can Watch it Here

Speculative trading in capital markets, when investors bet on further gains by their own trading behavior and not on more fundamental reasons, is the real culprit, says former Senator Byron Dorgan, D-N.D.

"There is no justification for the current gas prices. This is all about speculation by the people who are speculating on the price of oil and gas," Dorgan tells Yahoo's The Daily Ticker.

"We could shutdown excess speculation in commodity markets. This government should do that."

Democratic lawmakers recently urged the U.S. Commodity Futures Trading Commission in a letter to stop "dragging its feet" on implementing new regulations to stop Wall Street from dominating the oil market.

"As the cost for American people to fill their gas tanks continues to skyrocket, the CFTC continues to drag its feet on imposing strict speculation limits to eliminate, prevent, or diminish excessive oil speculation," the members of Congress told the commissioners in a letter, according to Reuters.

"We urge you to take immediate action to impose strong and meaningful position limits, and to utilize all authorities available to you to make sure that the price of oil and gasoline reflects the fundamentals of supply and demand."

Editor's Note: Google Banned This Video But You Can Watch it Here



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