McFall in oil probe
Concern over the rising price of oil – which yesterday hit a new record of $146 a barrel – has prompted the powerful Treasury select committee to hold its first ever hearing into the regulation of the oil markets.
The committee, which is chaired by Labour MP John McFall, will hold the hearing in mid-July and in particular will look at the role of speculators in driving oil to record prices.
The move was seen as indication of the increasing pressure on politicians to address the issue of rising oil prices, which has seen a barrel of Brent crude rising by almost $4 since the beginning of the week.
Yesterday oil jumped to fresh record highs as traders rushed to buy ahead of the long weekend in the US.
The Treasury select committee’s move follows similar actions in the US, where Congress has held numerous hearings on the matter.
In America there has also been a raft of bills in Congress seeking to limit speculation in oil futures markets that some blame for driving up prices.
One piece of legislation requires the Commodity Futures Trading Commission to “utilise all its authority, including emergency powers, to take steps to curb excessive speculation in the energy futures markets”.
American Presidential candidates John McCain and Barack Obama have also expressed concern about the role of speculation in oil markets.