Open the strategic reserves, dump 1/3 on the market and make the speculators lose. Drill Here, Drill NOW

ASH, Salem, MA, US

There is at least $50 added onto the price of crude oil per barrel that is pure speculation by unregulated hedge funds owned by banks. Speculators have now crippled the global economy. It is not a supply and demand issue. The price of crude has doubled in a year.

Susannah, Las Vegas,

People: There is no shortage of oil!
<br/>
<br/>Lindsey Williams, The Energy Non-Crisis
<br/>You Tube: http://www.youtube.com/watch?v=NbakN7SLdbk

Mike McGuire, Victoria,

Current law permitting trading of unlimited contracts in commodities by banks, hedge funds, institutuions, pension funds, and speculators was made legal by Bill Clinton.

The same legislation made the sub-prime loan legal.

We now see the wisdom of this legislation. Remember that when you vote!

W Sumerford, Amarillo, USA

Jeff,

It is not the "US" position to not drill in ANWR or any other part of Alaska. It is not the "US" position to drill on the US continental shelf. If you feel like blaming someone, blame the enviro-zealots, the pandering politicians, and the voters who elected them.

George, Washington, DC, US.

With all the ups and downs in the price of oil that is caused by speculators and oil future trading, should we not take oil off of the comodities market completely? Speculation and futures trading is adding about $50 to $60 per barrel. Oil should be reclassified as a natural resource like water.

Derek, Chattanooga, USA

The oil prices have a lot to do that the Arab countries want Obama to be presisident! They are also traders ever time Nigeria or Iran rattle their sabors oil goes throught the roof to hurt America. Terror countries want Obama why? He is weak and uqualified even to be a senator! Follow the money

James Day, Carlsbad, USA

Mike, Some bbls get traded more than once in a day, that is why you have more bbls traded than sold. Pete in CO is spot on, here. Oil companies make a lower % profit than nearly every other industry - but with the gross $ sales it becomes a record profit. Folks hear 'record profit' and go berserk.

Gregory Anderson, Richland, WA,

Danny, while reserves are huge, oil production is rate-limited by infrastructure. Demand has outpaced that production off-and-on since 2005. The world demand increases & supply slows as fast-flowing reserves are lost. It is indeed supply and demand - some of the demand is created by futures sales

Gregory Anderson, Richland, WA,

Are they going to exclude the Exchange Stabilization Fund from the investigation of manipulators who have no legitimate commercial supply or hedging reason to be in the market?

Gene, Annapolis, Maryland

My peers from the USA embarrass me.

They are unable to see clearly because their views are clouded by the desire to have cheap prices for a commodity they selfisly consume so much of (don't suggest to them they move out of the "exurbs" or trade up that SUV for a prius... or a bike or walk to work)

Aaron Krowne, Atlanta, USA

If you want to find a party at fault for the massive buy-side interest in oil, take a look at the government and the Fed. The currency is being devalued in order to bail out the banks. Only a fool would would keep money in paper money. And you can bet the smart money knows that.

Aaron Krowne, Atlanta, USA

TRADE ON MARGIN is responsable for at least 50% of the rise in oil this past year. Sure supply and demand have a very real impact but as a trader (not in oil futures) I can testify that you find a trend and then exploit it. That is exactly what these oil future trarders are doing at just 5% risk.

spike, Minneapolis, USA

Finally some wisdom with respect to the cause of high oil prices! Better late than never I guess. The commodities markets may work for other goods, but oil is an exception due to the fact that it has a virtual monopoly over the energy market, especially with respect to transportation.

Christopher, Washington, USA

The oil price surge is not dirven by supply and demand. For example, a few weeks ago, Brazil announced the discovery of the third largest oil reserves in the world. that same day oil hit a new all time high. Speculators. That's it.

Danny, Hot Springs, USA

Mike and Douglas are totally wrong. Firms do buy oil at those prices, and the markets themselves, not so-called "Big Oil," set the prices.

If believe that gouging exists, suggest you read all the FTC reports that never turned up any evidence of. "Gouging" is an idea cooked up by oil opponents.

Pete, Boulder, CO, USA

remember when enron was doing just about the same thing with manipulating energy prices in cally.....


problem is eventually the floor falls out and it will be even worse for the economy then high oil prices

Peter, Ness, usa

Correct me if I'm wrong. No one actually pay $139. a barrel for crude. These are "paper" contracts. It was said the other day that the world consumption is something like 880 million bbls, yet there 1.3 billion bbls traded on paper daily. Oil companies are just using this to gouge the public.

Mike Taylor, Indy, USA

All complete balderdash! market is set by traders and Big Oil.....period! Price has nothing to do with supply and demand. the only cure is to "wean" ourselves off fossil fuels and turn middle east back into a desert. Instead of a terrorist paradise :(

Douglas , Newark, USA

Great fortunes are being made in the oil commodities market. And as Balzac pointed out, 'behind every great fortune lies a great crime.

Brendy, Washington, US

Why doesnt US consumer stops complaining and spends his/her tax rebate on buying shares of Exxon? That will hedge their fuel bills...

Al, London,

There is no shortage of oil - the current prices are being driven by greedy manipulator of the stock market. I wish Pres Bush would release immediatly 1/4 of the patrolium oil supplies stored that would cause an immediate crash of this oil boom (and these speculator would loose their shirts.

Leroy Whiteman, South Fork, USA

George Bush does not and cannot control the oil markets so the idea that Bush should direct billions to Exxon/Mobile is entirely and enormously stupid. Ex/Mo is a multinational that makes moneyall over the world. If you think their profits here are big compare to what they make in UK at $9.50/gal.

Ken Moore, Stockton CA, USA

If only true buyers and sellers of the actual oil - Producers and Refiners, etc. could buy and sell oil, the Price would be more reflective of what everyone calls supply and demand. The general media should report Spot prices more.

Curtis, Athens, USA

The current price reflects real world prices. Declining production in many oil fileds from lack of investment (Russia, Iran, ect.) Lack of a national energy policy in the United States that actually addresses oil dependancy. And the rise of stanadard of living in China and India and other places.

Ross, Miami, RSA

By the time the rich jerks running our country fix this, the powers that be will have siphoned off many billions of dollars from hard working people around the world.

Why didn't George Bush just put "pay to the order of: Exxon Mobil "on my stimulus check because that is where it went!

Glenn P., white river Jct., USA

How do you get to $137 a barrel if there isn't so called demand to support it?

Trade on margin. One only needs 5 cents(US) to trade 1 dollar(US) in commodities. It's the best credit line out there. Why speculate in stocks or bonds where one needs 50 cents to trade 1 dollar in commodities.

Gabriel Sutherland, Chicago, USA

Price limits have been known to distort prices but limitations on position size is something that is entirely reasonable. The discrepencies between the way regulators oversee speculative activity between US and London is significant with action on ICE (cleared in London) not subject to limits

Donatella, NY, Brooklyn, NY, USA

How about not paying for stock if it goes the wrong way? The big guys can do it and the brokers let them do it because they make so much money on their other plays. If an individual does he is in serious trouble, but it's OK with the USA SEC. It's incredible but true. Google "Overstock.com" lawsuit

rmiers, dallas, USA

You have to love the US position on oil, no opening of Alaska or off the continental shelf. But it is ok for oil companies to drill overseas in environmentally sensitive areas like the Congo with little to no oversight. Another bright move by the environmentalists, what ever happened to that one world view?

Jeff in Miami Beach, Miami Beach, USA/FL

And while you're at it, hows about a curb on excessive executive wage rises. How about curbing the off-shoring of earnings for tax efficiencies sake. Hows about a curb on unwarranted executive bonuses paid on an annual and weak performance target such that the bonus is virtually guaranteed.

Joe, Geelong, VIC Australia

These guys are the "New Enron" traders. Of course the market is being manipulated and no rational person can justify or explain the explosion from $60 a barrel to $137a barrel.

But traders beware, read Galbraith. Bubbles "ALWAYS COLLAPSE", ALWAYS!

Joe Ballas, Portland, USA

The US Treasury secretary cites cyclical supply and demand situations that have existed for decades, at least. Could it be the powers in Washington don't like where the fingers will be pointed if individual investors (Soros?) and hedge funds (including the one managed by Chelsea) are the culprits?

Robin, Crane, USA

The easiest solution is to increase the margin requirement substantially, at least until the speculative fever breaks. One thing that is true of all markets is that they revert to the mean eventually....considering the very overbought condition of oil futures, in time mean conversion will also occur

Terry Wespestad, Pequannock, New Jersey, USA

Given the FSA is a private company which must serve its paying subscribers, i.e. the above bourses and fundholders, its let-them-eat-cake position on oil tempts one to infer utter regulatory capture, rather than inappropriate market fundamentalism. Or am I just being cynical?

Jonathan, Baldock, UK

I firmly believe there needs to be safety controls in place to prevent greed driven spikes in prices on the commodities exchange the same as safety controls were implimented after the great crash of the Thirty's to prevent a bottoming out of stocks. Spikes can cause market instablility too.

Ted McKeown, North Bay, Canada

" they believe the price has been driven by supply and demand."

This is absolute bull! Many countries/regions are predicting lower growth, etc. where is the demand going to come from? The price can go up $2 before you finish reading this sentence. In that time demand/supply has changed that much?

Johann Foo, Kuala Lumpur, Malaysia