House passes oil anti-speculation bill

WASHINGTON (Reuters) – With financial markets in turmoil, the U.S. House of Representatives passed a bill on Thursday intended to prevent excessive speculation in oil and other futures trading despite a White House veto threat.

The bill requires the Commodity Futures Trading Commission to set position limits on major oil and agricultural futures contracts and to monitor look-alike contracts traded over the counter. It could set limits on those contracts, if need be.

Backers said the bill would ensure futures prices are based on market fundamentals and avoid the ills affecting the stock market. Some lawmakers blamed huge infusions of money by index, pension and hedge funds for driving oil contracts to a record $147 a barrel in July.

“Our energy markets are not working as they should,” said Rep. Rosa DeLauro, Connecticut Democrat. “The price at the gas pump is killing middle-class American families.”

Reuters