Commissioner Bart Chilton is expected to make an announcement in favor of curbing oil speculation on Wall Street, according to the New York Post. New data reveals that oil speculation costs the airline and trucking industries $39 billion a year.
Chilton will reveal the data in a speech before traders at the Javits Center. The CFTC passed rules in October intended to limit traders who don’t take physical delivery of crude or oil supplies to 25 percent of the deliverable supply each month. Chilton is expected to tell the traders that the “speculative premium” on oil increases the price per gallon of gas by 56 cents, costing every consumer up to $757 per year.
Groups representing Wall Street financial conglomerates are attempting to block the CFTC’s position limits, saying the Commission went beyond its limits in imposing restrictions. Chilton is seeking to accelerate the rules by June, rather than wait for the CFTC and SEC to define the term “swap.”