(Washington, DC) – Senator Richard Blumenthal released the following statement today after the Commodities Futures Trading Commission (CFTC) voted to impose position limits on oil speculation, requested numerous times by Blumenthal:
“This strong step by the CFTC will help rein in the excessive speculation and gambling in the oil markets that have led to crushing gas prices for families and businesses in Connecticut. As I have repeatedly demanded, such action by regulators is key to stopping reckless trading from inflating prices at the pump. Especially as the economy continues to recover, there must be strong enforcement so Connecticut families pay fair prices to fill their tanks and heat their homes.”
Blumenthal previously wrote to the CFTC in May with a group of bipartisan Senators to request that the commission impose limits that would reduce the growing levels of speculation in the oil futures market. The CFTC’s vote will not only limit the amount of contracts that a singular speculator can enter into for commodities including oil, but will also enforce spot-month position limits. The current price of gas in Connecticut is $3.73/gallon compared with $2.99/gallon a year ago.