Quote:
Originally Posted by TheSpecialist
If the Arabs can get together and set the amount of oil they tap every day, why can't the Us shutdown the speculative market, why is there even a speculative market anyway? I mean once the oil is out of the ground, don't the big oil companies already purchase it from the arabs, I mean there is no middle man right?
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The US can not effectively do anything against energy speculation currently because they lack effective means to regulate the market. The electronic trading of oil contracts are exempt from the CFTC's large trader reports which is the CFTC's main way of regulating the markets. This was done in 2000 at the request of Enron and other large energy traders. Despite Enron and all that has gone on since with Dodd-Frank the exemption remains on the books. In addition energy traders can trade on ICE in the UK where their trading is outside the scope of the CFTC.