I hear that the President will be unveiling a plan today for increased regulation of oil speculators in an attempt to lower gas prices.
Washington (CNN) – Under pressure to bring down the high price of gas, President Obama and Attorney General Eric Holder on Tuesday will outline a proposal to increase federal supervision of the oil markets in an effort to clip the wings of speculators who are profiting off the volatility of the oil market.
The president’s $52 million plan would let regulators force energy traders to put more of their own money into trades and also boost the penalties on manipulators who are found to be speculating unlawfully, according to a senior administration source who would not comment on the record in advance of the president’s remarks.
Oh, look at CNN! Isn’t it clever how they subtly morphed oil speculators into evil market manipulators? But I digress.
I’ve previously explained, in terms so simple anyone can understand, why oil speculation is a moderating factor in the oil market.
In light of that, I would like to suggest to the President that the best way to lower gasoline prices is to ensure a steady supply of oil free from interference – dare I say manipulation – from hostile foreign governments. Everyone understands this, except, apparently, the President and his energy policy advisors. Maybe the President needs a few more grandmothers and a few less egghead academics advising him.
Approving the Keystone Pipeline project would have been a good first step in that direction. And after that, drilling for our own oil. We have plenty.
But a steady supply of reasonably priced oil wouldn’t promote the green agenda as so foolishly stated by (then incoming) Energy Secretary Stephen Chu back in 2008, now, would it? Despite Chu’s recent attempts to walk that statement back, it’s clear that lowering gasoline prices isn’t a serious priority for this administration.
Update 1: The President announced a crackdown on oil speculators earlier today and “coincidentally,” oil prices have risen over a $1.00. The White House refuses to “speculate” on how much effect the crackdown will affect prices at the pump. I’m not sure, but I believe that’s code for “not at all.”