NEW VIDEO: Speculative Oil Trading, As Explained by "Trading Places"

As Republicans Move to Cut CFTC Speculation Investigations, Oil Traders Follow Old Script

WASHINGTON (June 16, 2011) – Whether it’s fictional trading of frozen, concentrated orange juice or real-life speculation of light sweet crude oil prices, Wall Street traders will continue to follow a similar script of price manipulation if House Republicans have their way. In a humorous video using the Eddie Murphy/Dan Aykroyd comedy “Trading Places,” the Natural Resources Democrats and Ranking Member Ed Markey (D-Mass.) are making the case that if CFTC funding is cut, we will see a sequel of increases in oil prices due to oil speculation.

The CFTC filed charges in late May against oil traders for manipulating the market, yet Republicans are pushing a bill that would cut CFTC funding by 15 percent, hamstringing the agency in charge of monitoring and policing speculative trading.

“I think even Eddie Murphy wouldn’t consider these speculation-driven high prices to be a laughing matter,” said Ranking Member Markey. “We saw this movie of rampant speculation in the oil markets in 2008, and this year is the sequel. If Republicans have their way, by next year we could have a trilogy of economic horror movies on our hands.”