How does the government regulate oil commodity trading? What is the minimum allowable price manipulation?

Question

Congress could just tax the profits made on oil and food commodity profits that drive up prices without taking delivery! That would probably put a stop to this senseless trading terror!

Answer 1

Half of our money paid at pump goes to Wall Street speculators. And we can not hear or read main media reporting them. We are kept in the dark

“Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.”

http://www.marketwatch.com/news/story/ga...

Answer 2

All oil and commodities are regulated by the Commodity Futures Trading Commission (CFTC) under the Commodity Exchange Act

"The Commodity Futures Trading Commission (CFTC) is an independent agency of the United States Government.

The Commodity Exchange Act (CEA), 7 U.S.C. § 1 et seq., prohibits fraudulent conduct in the trading of futures contracts. In 1974, Congress amended the Act to create a more comprehensive regulatory framework for the trading of futures contracts and created the Commodity Futures Trading Commission, replacing the Commodity Exchange Authority.

The stated 'mission' of the CFTC is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets."

http://en.wikipedia.org/wiki/Commodity_F...

CFTC Law and Regulation

http://www.cftc.gov/lawandregulation/ind...

PS It is illegal to manipulate any public market.

Answer 3

Michael Masters is an idiot. Oil goes higher no matter what congress does, this is a global market. There is no demand destruction.