I am a little weary of this step in the regulation of futures markets. Though I do not have the complete information before me and I do realize the vital interest there is in price stability I question the role of government to overly regulate the energy futures market as futures markets do serve a function that is beneficial to more than the few. Though what that benefit is escapes me at the moment.

In fact the price swings of late I’d say have little to do with futures markets and more to do with expected price fluctuations of a dwindling resource, i.e. this is an indicator that we have reached peak oil.

There was a study (hey if you are interested in the details, let me know) that came out a few years back that showed the price curve of a commodity that suddenly reached the point of being a dwindling resource, meaning that new demand was coming on at a higher rate than supply. Contrary to expectations the price did not skyrocket forever but went through wild gyrations