Posted 5 years ago on Feb. 28, 2012, 7:28 p.m. EST by GirlFriday
This content is user submitted and not an official statement
Bart Chilton, a commissioner at the Commodity Futures Trading Commission (CFTC), the federal agency that regulates commodity futures and option trading in the United States, says a very few number of players control too much of the market, allowing them to push the price of gas higher and higher. The American public knows very little about the oil speculation industry because a conservative majority on the CFTC has refused to implement the mandates from the Dodd-Frank Wall Street Reform and Consumer Protection Act to curb abuses and provide transparency.
One of those players is the petrochemical multinational Koch Industries. Although oil extraction is a small part of the Koch’s oil business the company has major control over every other part of the market as its core venture is shipping crude oil, refining it, distributing it to retailers, then speculating on the future price. The company actively trades about 50 types of crude oil around the world and has trading operations in London, Geneva, Singapore, Houston, New York, Wichita, Rotterdam, and Mumbai.
When future oil prices are expected to rise–which means when demand is expected to exceed supply–big banks and companies like Koch start buying up oil and storing it in massive containers both on land and offshore to lock in the oil for sale later at a set price. http://www.addictinginfo.org/2012/02/26/how-the-gas-prices-are-manipulated-by-the-koch-brothers-and-other-wall-street-players/
Yep. There you go.