Oil experts say up to 60 percent of gasoline hike may be due to oil speculators

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Oil experts say up to 60 percent of gasoline hike may be due to oil speculators

WEWS – Consumers are repeatedly told “supply and demand” is a major reason why gasoline prices grow, but experts from the Oil Price Information Service report “supply and demand” isn’t the only reason.

The independent agency monitors fuel prices across the country, it’s team of experts also understand what causes prices to climb.

“It’s likely Northeast Ohio gasoline prices could top out at $4.20 by the end of May,” said Oil Price Information Service Director Fred Rozell. “Oil speculators could be responsible for up to 60 percent of this gas price increase.”

Oil speculators buy and sell oil futures simply to make a profit, and in many cases, never take delivery or use the oil. Speculators who buy and sell large amounts of oil can artificially cause the per barrel price to climb.

Lawmakers like U.S. Sen. Sherrod Brown are well aware of the impact oil speculators have on prices at the pumps. In fact, Sen. Brown wrote a letter to Commodity Futures Trading Commission Chairman Gary Gensler, calling for tougher restrictions for oil speculators.

Sen. Brown believes limiting the size of oil buys and restricting speculation to investors who will actually take delivery of the oil, will help blunt the impact speculation has gasoline prices.

Sen. Brown reports new guidelines curbing oil speculation should have been in place back in February, that’s why he continues to urge the trading commission to take action.

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