NEW YORK (CNNMoney.com)—some believe that rising oil prices are due to nothing but widespread speculation, on Thursday, the U.S. government declared about an extensive investigation regarding oil price manipulation. The government also announced that it would get further information for investors’ effect on the market.
Commodity Futures Trading Commission (CFTC) pledged to take these measures after having enormous pressure from heated lawmakers. The measures will do two things.
At first more information from non-commercials users of oil and index funds will be gathered. Information, regarding oil trade outside the U.S. on exchange as Intercontinental Exchange Europe (ICE) where Commodity Futures Trading Commission (CFTC) has no supervision and doesn’t have detailed information, will be gathered.
Secondly, it will be CFTC’s strategy to carry out an actual investigation regarding possible price manipulation that is possible from a commercial user of oil like production company storage or shipping company.
The growing investors’ interest in commodities is an issue of heated debate. Some are of the view that investors are unreasonably driving up the price of oil and gas as they have no other place to situate their money.
While some believe that tight supply and rising demands are the real causes of investors’ growing interest.
CFTC previously told that there was evidence about speculators who were falsely driving up prices.
A chart presented in congressional testimony, shows that CFTC used data from 2007 to draw that conclusion.
The oil traders may see this request for more information as a sign to widen regulation. On Thursday oil prices dropped around $4 that was the biggest fall during the recent weeks. One analyst ascribed this fall a slide to the investigation.
Rising oil prices have become an intense issue all around the world and the emerging economic problems are seemingly endless even in country like U.S.
This article is the property of http://www.latestbusinessupdates.com
Copying and publishing any article from our site is strictly NOT allowed