Manufacturers seek oversight of gas traders

A coalition of chemical manufacturers and other industrial energy consumers is urging Congress to approve legislation that would give the Commodity Futures Trading Commission (CFTC) oversight authority over unregulated oil and natural gas futures markets. The legislation (S. 2642, H.R. 5248) would require energy traders, who electronically trade futures contracts in the U.S. or on a foreign exchange, to keep records and report large trades to CFTC. In a Sept. 25 letter to the Senate Agriculture Committee, the coalition-Industrial Energy Consumers of America-says the measure would help ensure that oil and natural gas prices reflect supply and demand rather than market manipulation or excessive speculation. "IECA does not want to regulate energy markets in the sense of controlling the market or prices," the letter states, but it "does support stronger government oversight, transparency, and a level playing field."