Obama to unveil proposal to rein in manipulation of oil markets
April 17th, 2012
09:40 AM ET
3 years ago

Obama to unveil proposal to rein in manipulation of oil markets

Washington (CNN) - Under pressure to bring down the high price of gas, President Obama and Attorney General Eric Holder on Tuesday will outline a proposal to increase federal supervision of the oil markets in an effort to clip the wings of speculators who are profiting off the volatility of the oil market.

The president's $52 million plan would let regulators force energy traders to put more of their own money into trades and also boost the penalties on manipulators who are found to be speculating unlawfully, according to a senior administration source who would not comment on the record in advance of the president's remarks.

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Filed under: gas prices • President Obama
soundoff (22 Responses)
  1. Wiley

    The problem isn't who the tax system favors. The problem is the tax system. Enact the Fair Tax or Flat Tax, but tinkering around the edges isn't going to help anyone.

    April 17, 2012 09:44 am at 9:44 am |
  2. Charles

    This is a completely biased poll. How can the tax system be biased in favor of the rich, when 50% of the people in the United States do not pay income taxes. The tax system is clearly biased in favor of the poorer half of the population and that is the result of pandering and not fairness.

    April 17, 2012 09:50 am at 9:50 am |
  3. WiredweirdinSF

    And just because the liberally biased media will not tell you, but Debby Wasserman-Schultz, the DNC maven of meaness, while shrilly calling for Mitt Romney to release his tax returns, has never released heres in spite of many calls for them. Another blatant example of democrat liberal hypocrisy, under reported of course because the liberally biased media will never report the truth about they democrat liberals and their corrupt, thug, union bosses.

    April 17, 2012 09:50 am at 9:50 am |
  4. jm

    Well of course taxes favor the rich...they're the ones who can bribe Congress under guise of the First
    Amendment according to the Supreme Court.

    April 17, 2012 09:51 am at 9:51 am |
  5. Tammy

    The U.S. needs to go to a flat tax, period. I'm not wealthy, but I'm not poor (anymore) either. I'm sick of the majority of people getting all of their income tax back and hearing "When I get my refund I'm going to..." Our household paid 26% this year, two working adults, two expensive kids period. Never a refund. You want to live in the U.S., pay tax!

    April 17, 2012 09:54 am at 9:54 am |
  6. The REAL Truth.. (not the imposter)

    About time... given that 40% of a barrel of oil is speculative pricing. Energy market should be controlled, just like any other commodity.

    April 17, 2012 09:55 am at 9:55 am |
  7. Fair is Fair

    I thought the president couldn't do anything about the price of gas?

    April 17, 2012 09:58 am at 9:58 am |
  8. lyn

    God Bless our President Obama, he is working hard everyday for the middleclass and the poor people who don't know where the next meal will come for their family. Thankyou President Obama we too will always be there for you.

    April 17, 2012 10:00 am at 10:00 am |
  9. vodolei

    considering the fact that most people who vote republican tend to do so even if it means voting against their own interests, it all makes sense now. please refer to the Bill Maher show featuring interviews with republican voters in Alabama and Mississippi.

    April 17, 2012 10:07 am at 10:07 am |
  10. amarjeet

    Increased & fair taxation only gets more money to IRS which improves national treasury & make the losses in debt & deficit financing. Working class has contributed so long to national coffer for rich to grow richer & wars for endless operations by losing limbs & brains in war after effects. Why middle class should continue to sacrifice when rich are making best use of their labor investment only not contributing even in the national cause just a little for charity to make use of rebates. Obama concepts of fair taxes for all are human & honorable. Romney is keeping his income tax details to manipulate to reduce his tax liabilities to befool the people of America. Romney must understand that his game is out & every American knows it. If he was honest, he should have been first to give out his real income & sources with expenditure like Obama. It is clear cheating on IRS & people of America for trust & faith in his leadership & political ingenuity as well integrity. He is not honest & straightforward to nation as a whole.

    April 17, 2012 10:09 am at 10:09 am |
  11. amarjeet

    Regulators have to be legal & loyal to nation of Americans not to undermine its implementation & laxity in enforcement of law.

    April 17, 2012 10:11 am at 10:11 am |
  12. John

    This is funny considering 50% of the population pays no income taxes. Looks to me that the tax system favors the low income people considering the number of folks that pay no taxes. I am willing to bet these fools that took the poll if asked how it benifits the rich would not be able to provide facts to support their answer because they are answering out their backends.

    April 17, 2012 10:13 am at 10:13 am |
  13. Pete

    It is spectulators who are basically running the petrol market.OPEC years ago stated world wide they'd be happy with $80 a barrel oil and tryed unsuccessfully to get Bush to agree on new refineries built nationwide at OPECs expense.Its you people fail to remember the daily onslaught of propaganda brought on by Bush and his corporate petrol croonies that constantly told you of terrorist acts on overseas refineries,pipeline explosions and other events that kept oil speculators rolling in profits,made illegally daily. Pres Obama, can't get the proposal passed because of republican obstructionism ,their party is securelly in the pockets of big oil.The only way would be by executive order and backed by people on Capital Hill,but that won't happen,there again the obstructionism steps in.It won't change till there's a majority of Dems in the House and Senate,most likely after November,then drastic measures will happen,long over due.Then you'll see the change he promised....

    April 17, 2012 10:15 am at 10:15 am |
  14. SUBS 4 VOTES

    This is a start. The speculation has got to stop. This inflated price of gasoline is just lining the pockets of the oil companies. In my opinion, the U.S. needs to start looking into perfecting fuel cell technology and start depending on every other source of energy that does not consist of fossil fuels.

    April 17, 2012 10:16 am at 10:16 am |
  15. Mark in Seattle

    And of course the republicans are ready to oppose and call foul.

    April 17, 2012 10:18 am at 10:18 am |
  16. Bill from GA

    When W was Prez, oil traded around $140 per barrel when gas reached a national average around $4 per gallon.

    Now, with oil trading around $102 to $110 per barrel, gas has reached a national average near $4 per gallon.

    Something ain't right.

    April 17, 2012 10:19 am at 10:19 am |
  17. Bill from GA

    A free-market system provides motivation lacking in more socialist countries, but it needs to be reined in somewhat when Capitalists show no regard for the overall good of the country. Access to our markets is not a right, it is a privilege that needs to be regulated for the betterment of the country, not for the enrichment of a few.

    April 17, 2012 10:26 am at 10:26 am |
  18. Rudy NYC

    Good. They should adopt the policy that was adopted on the Chicago Board of Trade decades ago. They required that if you are going to purchase so many pork belly futures per year, then you are required to accept delivery on a minimum percentage of what you have purchased.

    Right now oil specualtors simply pay a small penalty if they do not accept delivery if they still own the futures on their due date for delivery. Most consider that penalty as a minor cost risk of doing business. Raising the penalty would cause them to raise the cost to customers, or pass it off on someone else in some other fashion. Being forced to accept delivery has proven to be a highly effective way of ridding markets of commodities speculators simply out to make a quick buck.

    April 17, 2012 10:26 am at 10:26 am |
  19. king

    Its about darn time!!! I know the repubs going to be going off their rockers shouting free market and government overreach. But the president don't do something, the oil companies will act like a vacuum and vacuum all the money from our economy, and send it to APAC Nations, And left America without spending money to sustain our economy

    April 17, 2012 10:27 am at 10:27 am |
  20. S.B. Stein E.B. NJ

    That is one way to reduce the cost of oil. Part of the cost of each barrel of oil is from those speculators. It isn't a clearly supply & demand process.

    April 17, 2012 10:27 am at 10:27 am |
  21. sonny chapman

    Obama should have gotten a Repub. to sponsor this. The Repubs. will oppose this Obama idea like Pavlov's dog salivated at the ringing bell.

    April 17, 2012 10:27 am at 10:27 am |
  22. Killdeer

    It's just about time someting like this was done. I'd make them pay for the oil and take delivery of it at a refinery. This would stop some of the speculation b/s in it's tracks.

    April 17, 2012 10:29 am at 10:29 am |