Oil Market Manipulation: Fact or Politics?
By: Mycah Glover
Updated: April 19, 2012
MIDLAND -- Although gasoline prices have recently been falling, they're still higher than what consumers would like to pay. It's been a big topic of conversation for President Obama lately. With republicans placing the blame for high gas price on the Obama Administration, some say his administration is now searching for ways to take the focus off of themselves.
They say oil speculators are just the latest target.
On Tuesday, President Obama said, "I call on Congress to pass a package of measures to crack down on illegal activity and hold accountable those who manipulate the market for private gain at the expense of millions of working families."
Although Obama didn't specify who was doing it., he did say, "We can't afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage, and driving prices higher only to flip the oil for a quick profit."
This is something financial expert Mickey Cargile says isn't currently an issue. "There's no proof of that. In fact, the president has had a commission in place that has been studying that exact issue and has found that there is no wrongdoing going on," said Cargile.
Critics say it doesn't make any sense for the president to place partial blame on speculators for the price at the pump. It's an issue that Cargile says has even left the president at a loss for words.
"When asked the question of...after implementing the process that the president proposed on the 17th... what would the price of gasoline be. And the president refused to answer that question. So this is an issue that polls well, but has no substance," said Cargile.
This has left many to believe this was purely a political maneuver.
"I think with the election coming in November and people looking at the price they're paying for a gallon of gas at the pump that it's a big political issue," said Hoxie Smith, Petroleum Professional Development Center director. "Especially when republicans are saying look...you know...these are your policies, and you've been putting all this money into renewables, but renewables aren't fueling America's transportation."
Smith says Obama's speech was timed to perfection. With the price of gas already on the decline, Cargile agrees.
"We've already seen the price of gasoline come down about six percent through natural economic forces over the last few weeks. It will continue to go down in the summer. So it's something he can claim success for when, in fact, this particular policy did nothing to reduce the price of gasoline," said Cargile.
Meanwhile, the president says his administration will take new executive actions to better analyze and investigate trading activities in energy markets.
They say oil speculators are just the latest target.
On Tuesday, President Obama said, "I call on Congress to pass a package of measures to crack down on illegal activity and hold accountable those who manipulate the market for private gain at the expense of millions of working families."
Although Obama didn't specify who was doing it., he did say, "We can't afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage, and driving prices higher only to flip the oil for a quick profit."
This is something financial expert Mickey Cargile says isn't currently an issue. "There's no proof of that. In fact, the president has had a commission in place that has been studying that exact issue and has found that there is no wrongdoing going on," said Cargile.
Critics say it doesn't make any sense for the president to place partial blame on speculators for the price at the pump. It's an issue that Cargile says has even left the president at a loss for words.
"When asked the question of...after implementing the process that the president proposed on the 17th... what would the price of gasoline be. And the president refused to answer that question. So this is an issue that polls well, but has no substance," said Cargile.
This has left many to believe this was purely a political maneuver.
"I think with the election coming in November and people looking at the price they're paying for a gallon of gas at the pump that it's a big political issue," said Hoxie Smith, Petroleum Professional Development Center director. "Especially when republicans are saying look...you know...these are your policies, and you've been putting all this money into renewables, but renewables aren't fueling America's transportation."
Smith says Obama's speech was timed to perfection. With the price of gas already on the decline, Cargile agrees.
"We've already seen the price of gasoline come down about six percent through natural economic forces over the last few weeks. It will continue to go down in the summer. So it's something he can claim success for when, in fact, this particular policy did nothing to reduce the price of gasoline," said Cargile.
Meanwhile, the president says his administration will take new executive actions to better analyze and investigate trading activities in energy markets.
