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What is Driving Up the Price of Gas?

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    CFTC Commissioner Bart Chilton on the factors leading to the rising gas prices.

  • Duration 5:36
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Tell us what's causing the run up even as demand declines.

Commissioner Bart Chilton of the commodities futures trading commission who is also the author of a new book.

Entitled.

-- ammonium -- scam artists are ripping off America.

Barred -- mister commissioner it is great to have you what it to be with you again Lou.

Let's start with some of the fanciful ideas behind what is driving up gasoline prices.

Are we here in the national media that there is a conspiracy among refiners.

Not true.

We hear that it's just simply speculators driving it up it's not true.

The fact of the matter is we have a changed market in this country don't -- and the consumer is paying the high price.

-- you're absolutely right I mean these are now international.

Markets.

So even for example Lou if there's not a lot of refining demand demand in the US for crude oil where for gasoline products rather.

The refiners will export that so last year the refiners exported a lot of though the refined oil products to South America.

So it internationalize.

Is that the prices that -- that are paying as consumers.

Just one quick point -- -- -- you mention that the 92%.

Up since the president's been in office.

And I'm not saying everything's great certainly prices are high consumers are paying.

But the highest price on record for gasoline was in June of 08 of course -- previous administration.

And then that was up to 14727.

A barrel oil for ten was the nationwide average.

-- -- -- shell out reliably.

Barton who was president then.

That was George W.

Bush right right it was at but then prices did go down in fairness to him in December of the USA in -- -- Let's give him credit.

That's what -- signed the executive order.

To lift the executive moratorium against offshore drilling has.

Well I I'd I'd I'd probably we might have a disagreement Leu well I think that lets just over the facts that's what he did bubbly and within eighteen days the price of crude oil was plummeting.

Well that the economy -- -- ever all traders had a different hill and I know that yet so -- -- I thought that was part of the cause wowing.

Crude oil to rise to -- just about a 150 dollars a barrel you know I thought that was sort of a bone crushing causal effect.

On our economy and help drive this economy back into recession along with the sub prime mortgage.

Crisis certain.

Yeah it -- its probably don't disagree.

-- Well no not I think it's just a matter of degrees are what what caused the economic collapse was a lot of things as you say the sub prime.

But prices were so high in part as we've spoken about I think because of speculative interest not not driving it but in -- pushing it up that high level.

Yet but then.

When the economy started to tank investors in in all commodities started running for the hills and prices went down so when you take when you say you know.

Obama it's -- that the prices of increase for present Obama's been -- 92%.

We have it went down when the economy was in the crap -- so it's all a matter of degrees but by and large I think you and I agreed that there.

Fundamental causes for the economic calamity and -- both concerned about ensuring that prices are fair.

For consumers.

I absolutely I mean there's a lot of talk as we reported that we've got a new deal on the payroll tax holiday but we are watching.

With fifty cents gallon run up in gasoline we're watching everything that every bit of -- Up from a payroll tax holiday being sucked out of the economy by these high energy prices which is a direct reduction.

In personal disposable income we haven't heard of -- From this administration about it.

And that's in part because this administration finds it convenient to their Green philosophy.

To have higher gasoline prices no matter the pain.

What about not sure I agree that they want a higher gas prices little ones -- they want I don't -- that it's convenient to their philosophy.

Yeah I mean but but the bottom line is that there are myriad factors that impact gas prices that you talk about a one you're sure all the time whether or not as China's demand or problems in the Middle Eastern the Greek debt.

Or what you don't -- -- mansion -- -- -- net exporter for the first time since 1949.

Opt out of gasoline and and fuels from this country they're going to South America as you said also that Asia.

Yes what we do the turns -- what do we do.

To get our energy policy under control get prices down to a level that we don't choke the life out of a middle class in this country working men and women.

Absolutely.

And you know it seems to me that all of the rhetoric and Washington and it continues again and again and again for year after years -- That effort 25 years and I've seen it.

And if people realize that we've got to have an energy policy.

This isn't just based upon crude oil that isn't just based upon one or two other things but that has the whole.

Panoply.

Of options whether or not it's a geothermal or natural gas for clean call or or any of the other myriad technologies.

But finding that right balance so that you're not trading you know.

Enormous government -- I'm not a fair and balanced energy policy fair and balanced energy policy you've got Lou.

March although it's always good to talk -- thanks for being here.

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