WASHINGTON – After months of negotiations, the U.S. House of Representatives today passed legislation to crack down on the Wall Street speculators running up the price of oil.  U.S. Congressman Bart Stupak (D-Mich.) voted in support of H.R. 6604, the Commodity Markets Transparency and Accountability Act, which passed 283-133.  Stupak has been working since June to help craft the bill.

“Excessive speculation is driving up energy costs for American families and crippling our entire economy,” Stupak said.  “The Commodity Futures Trading Commission (CFTC) has refused to do what is necessary.  This comprehensive legislation is the most aggressive action taken so far to close off the loopholes that are allowing speculators to manipulate the markets and the price we pay for gas, diesel and other forms of energy.”

From January through May 2008 speculators poured more than $60 billion into commodities markets, causing crude oil prices to increase significantly.  Since July, when Congress began considering legislation to limit excessive speculation, speculators have made a mass stampede for the exits, pulling $39 billion out of the market.  At the same time that speculators were leaving the market, crude oil prices have dropped more than $53 a barrel. 

“Speculators have seen that Congress is serious about acting to curb excessive speculation and the markets have responded,” Stupak said.  “Since we began our hearings this spring and started drafting this legislation, the price of crude oil has dropped $53 from its high of $147 in July.  H.R. 6604 will help end the excessive speculation that has taken crude oil prices on a rollercoaster ride at the expense of American consumers.” 

H.R. 6604 strengthens position limits on regulated markets and establishes an advisory board to set position limits, while protecting physical hedgers.  It addresses the foreign boards of trade loophole and properly limits the bona fide hedging exemption to physical hedgers.  It improves the information available to the CFTC, significantly improving the agency’s ability to monitor energy markets.  Should the CFTC find excessive speculation on unregulated markets as a result, CFTC can take the steps necessary to correct it.

Stupak, chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations, has been investigating excessive speculation in the energy markets for three years and was the first to introduce comprehensive legislation to close the loopholes that have allowed speculators to artificially inflate energy prices.

Stupak first introduced legislation to reign in excessive speculation in April 2006.  As chairman of the Oversight and Investigations Subcommittee, he has held two hearings in the past 10 months on excessive energy speculation and in June introduced H.R. 6330, a more comprehensive version of his Prevent Unfair Manipulation of Prices (PUMP) Act.  He worked with House leadership in crafting legislation passed by the House in June directing the CFTC to use its existing authority to investigate and limit excessive energy speculation.

“For three years I have conducted an in-depth investigation into the excessive speculation that is driving unprecedented increases in energy costs,” Stupak said.  “This bill pulled key provisions from my proposal and I was pleased to see it pass the House.  But this should by no means be considered the end of aggressive oversight of the energy markets by this Congress or my Subcommittee on Oversight and Investigations.”

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