QUOTEBOX – Washington's take on new CFTC energy position limits

The Commodity Futures Trading Commission on Thursday proposed new rules that would limit big traders’ speculative positions in energy futures.

Congress took a hard look at excessive speculation after energy and food prices surged in 2008, prompting CFTC to increase oversight of the markets. Here are some comments from political figures on the CFTC’s proposal.

…JOHN BRODMAN, FORMER ASSISTANT DEPUTY SECRETARY AT THE U.S. DEPARTMENT OF ENERGY

“It seems to me as though the CFTC has really pulled back. A few months ago they sounded rabid about going after speculators in energy markets. But it looks like their bark was worse than their bite. CFTC will probably play a jawboning role in energy markets, occasionally firing a shot across the bow.”

BERNIE SANDERS, INDEPENDENT SENATOR

“While I commend the commission for coming up with reasonable limits on excessive oil speculation, I am very disappointed that this proposal as currently written will not go into effect until March of 2011. We need to stop Wall Street from jacking up oil prices and we need to do it now. My constituents are already paying too much for heating oil to stay warm this winter.

“Under this proposal, speculators will be able to artificially increase gasoline prices through the summer driving season and into next winter. That is wrong. The CFTC has the power and the responsibility to stop excessive oil speculation in its tracks. American consumers and small businesses deserve no less.”

Reuters