President Maldives: SPR, what SPR!
Barack Obama pledged to put more "cops on the beat" to oversee the oil market, as he went on the offensive with a range of curbs to stop traders from driving the oil price higher.
| His actions will drive the price of oil higher; he's trying to assert control of the market in his thug-socialist way, and that will clearly push prices up. |
The US cannot afford to let speculators artificially drive up the price of oil, the US President said on Tuesday, revealing plans to boost supervision of the market and tackle manipulation.
"Rising gas [petrol] prices means a rough ride for a lot of families," President Obama said. "It's like an additional tax that comes right out of your pocket."
| And who would know more about higher taxes than a progressive Democrat? |
The high oil price and its impact on consumers is underlining concerns about how the market is functioning and how much it is driven by speculation. Brent crude, London's benchmark oil, trades around $118 (£74) a barrel.
The measures from the White House, to be approved by Congress, include an "at least six-fold" increase in the number of staff who scrutinise the trading of oil futures contracts at US market watchdog the Commodity Futures Trading Commission (CFTC).
The Obama administration also wants the maximum penalties for manipulation in oil futures markets to rise tenfold, from $1m and 10 years in prison to $10m plus sentencing which reflects the "seriousness" of the misconduct. |