What to do about energy speculators?

Can any one country really regulate the capital markets? The issue has cropped up in the wake of the Wall Street Journal's report (later reported on by the Washington Post) about Vitol, the big Swiss energy conglomerate that is a massive player in the energy markets. The CFTC has been looking into the market's ups and downs and now says that financial firms account for 81 percent of all Nymex oil contracts. What's more, just four big firms hold fully one-third of all Nymex oil contracts. This is playing to some pretty intense political passions right now. We still can't conclude that the big dealers (on behalf of hedge funds and others) were responsible for the run up in actual gas prices this summer. But let's say legislators want to change the rules, and limit speculation. Such trading could easily go overseas. The ICE runs a London platform. And, the Post reports, the CFTC has stated it will not oppose trading in U.S. oil contracts overseas in Dubai. Goldman Sachs and Vitol are among those starting this new commodities platform.  

For more:
- here's the Washington Post's article

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