ATA supports limits on speculation for energy contracts

Washington DC
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The Air Transport Association, the trade group that represents major US carriers, is supporting efforts by the Commodity Futures Trading Commission on a new rule aimed at limiting speculative energy contracts that can cause energy prices to spike.

"Oil speculators exploit gaps in the regulatory structure to drive up oil prices out of sheer greed," said ATA President and CEO James May in comments submitted to the commission. "The proposed CFTC rule, particularly if strengthened, would limit excessive speculation and the ability of investment banks and large financial interests to dominate oil markets at the expense of consumers."

The new rule would increase transparency and provide regulatory support for the supply and demand fundamentals of the marketplace, according to ATA.