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You know -- -- the Commodity Futures Trading Commission Poland a 188 now suggesting that speculative traders all blame for the spike in oil prices the shift in policy.
Suggesting that the CFTC will push for more regulation.
How hard energy traders.
Fight back -- that has more details on this and on first the about face yet.
Urge you let's not get really worked up about this and this is -- commitment we want we buckled up and yet right still -- and remember that there's a new chairman of the -- is yet to see appointed by President Obama Gary Gensler.
So there's some political headwinds here as well.
But this is a complete 180 from what the CFTC.
Released in a report last year.
What were we talking about oil prices at the time take a look at those oil charts this is the biggest reminder of what really fired up.
All this talk about the speculators and market you see that price point.
-- reaching a 147 dollars a barrel the whole world wanted to blame all the speculators hedge funds.
All these bigger players that came into the market for pushing those prices to that level well guess what the speculators.
Can't really determine the swings in the market.
But what most of these guys and there's going to be complete outrage from traders on this.
Is that most of these guys will say.
-- make the markets more efficient why they add liquidity so one of the things I'm going to be doing today guys is gathering quotes from independent floor traders.
On their reaction to this -- TC possibly coming out this report our -- saying next month.
They're gonna release a report that actually points fingers at the speculators for driving those wild swings -- the commodity markets one real quick quote here from an independent energy trader.
In Chicago saying.
The use of the word speculator as a negative.
Is sloppy -- and flawed.
I'm a speculator I add value by providing liquidity without me the people who use the markets to hedge we'll see higher costs.
And the customers of those firms will pay higher prices for the end product of course the flip side of that argument is that the producers that farmers that consumers the businesses that -- These products.
At the end of the day when some how getting squeezed out of this markets are seeing their prices manipulated by these big players.
Coming in anything big bats on the market sorry those -- add liquidity they actually encouraged and helped the price discovery needs mark well they could -- Johnny -- pick.
A breath and I know that the viewer wrote last week -- -- erupted -- Sandra I'm sorry.
I saw an immediate you know don't interrupt -- US bases on the you what you don't -- a minute -- a one minute I'll talk fast you don't you don't see these kind of stories when oil prices are tumbling.
So my question of the CFTC government officials why is speculating in anything only problem when prices go up you never see headlines like -- speculators blamed for driving the price of oil to allow -- access to cheap.
That -- speculators and sit through it it's like just.
Illuminate the contract if they don't want prices to rise and fall and eliminated in the last thing that the farmer -- -- complain -- tainted in this market see prices are.
The last thing that our licensee is all these big traders go overseas because they will lose that price discovery but I will be presenting both sides of this argument all -- -- Thank you -- -- I talk -- -- like him.
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