White House seeks tools to fight ‘excessive’ oil speculation

On Tuesday, US President Barack Obama launched a new initiative aimed at curbing speculation in energy markets, arguing that it would help ease the pain of high gasoline prices. He urged Congress to give the US Commodities Futures Trading Commission (CFTC) expanded powers, including the authority to force exchanges to raise margin requirements if it believed that speculators were causing excessive price volatility. Market participants responded with harsh criticism of the proposals, calling them misguided and dismissing them as political theatre

The President, who is facing a tough re-election battle in which surging gasoline prices have become a major issue, called for Congress to release $52 million in funding for the US Commodity Futures Trading Commission (CFTC) to upgrade its technology and add personnel, whom he described as "cops on the beat" policing commodities markets. He also asked law makers to stiffen penalties for illegal market manipulation.

"We can't afford a situation where some speculators can reap millions, while