Regulating the Oil Oligarchs

Today’s lead story in The New York Times is titled, “U.S. Weighs Curbs for Speculators in Energy Trades.” It describes new attempts by federal regulators to control traders in markets for oil, gas and other energy commodities. These new rules are being implemented by the executive branch using President Obama’s existing powers, and they will include limits on volume of trading as well as increased disclosure requirements.

Apparently, speculative activity has been responsible for wild swings in the price of a barrel of oil, with a direct result on the prices that consumers pay at the gas pump. Oil prices rose to a record high of $145 a barrel last summer, then sank to $33 a barrel in December. The current level is about $60.

In my opinion, it’s refreshing to see President Obama reverse some of the trends of the Bush administration and its laissez-faire attitude toward the business world. Tougher requirements for banks, hedge funds and credit card companies have all been instituted under his watch. At last, the exploitations of the rich and powerful are being reined in by increased oversight and anti-trust regulations.

The problem is not interference with markets or even capitalism, as some would suggest. It’s stopping attempts at economic manipulation for the benefit of a very few corrupt players and insiders. And that’s good reason for average Americans to celebrate.