You can help make a difference in keeping energy prices affordable. Ask Congress to stop oil speculation now by closing known loopholes, increasing market transparency and requiring strict limits on trading. These reforms, combined with increased domestic energy supply, exploration, alternative energy sources and conservation will deflate the oil bubble and return prices to reasonable levels.

To address excessive speculation, Congress should promptly:
Reestablish strict position limits on energy commodities – Position limits prevent speculators from excessively buying and selling oil contracts. Position limits have existed since 1936, but Congress weakened these limits in recent years as a result of Wall Street demands. Congress must reestablish strict limits to prevent excessive oil speculation. These position limits must apply to any trader not hedging with the intention of taking physical delivery of, or selling, a related commodity.  

Close the "London Loophole" – International marketplaces and Foreign Boards of Trade based in London and other financial centers allow traders to buy and sell commodities through U.S. terminals. These trades are not subject to U.S. oversight even though the terminals operate in the United States. This allows speculators to avoid regulations intended to stop price manipulation. Congress must close the London Loophole by requiring foreign exchanges using U.S.-based terminals to follow domestic commodities-trading regulations. 

Regulate “swaps trades” – Speculators trade the vast majority of oil contracts in secretive, unregulated "swaps markets." This practice allows many speculators to trade with absolutely no oversight. Congress must require transparency and strict position limits for all trades in the over-the-counter (OTC) swaps markets, and encourage trades made by speculators to clear through centralized clearinghouses.  

Fully close the "Enron Loophole" – In 2000, Enron successfully lobbied Congress to weaken energy regulations. This has allowed some domestic commodities markets to operate with practically no government supervision – even though they trade contracts that are essentially identical to those traded on fully regulated markets like the New York Mercantile Exchange. These "look-alike" contracts significantly impact oil prices. Congress must close the Enron Loophole by regulating all commodities markets equally.

Tell Congress to stop oil speculation now – before it is too late.

Learn more about specific legislation that Congress must pass to stop oil speculation now.