This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Obama's Oil Speculator Wish Heads for Big Oil, Buffett Rule Abyss

NEW YORK ( TheStreet) -- President Obama would like to crack down on speculation and manipulation in the oil markets, but he doesn't talk about it often enough or have enough friends in Congress.

That leaves Obama's attack on oil speculators stuck somewhere between real policy and plain politics.

It's a safe bet that the president's wishes related to reining in the oil market speculation are doomed to join his legislative Wish List to Nowhere, alongside the Big Oil tax break repeal effort and the Warren Buffett "tax the rich" campaign, both recent legislative failures.

The attack on oil market manipulation is nothing new for the president, either.

In fact, this is one of the most frustrating aspects of the new focus on oil market manipulation: it was exactly one year ago that President Obama created a Justice Department financial task force to rein in the oil market.

Since then, nothing much has been heard from the White House or said by the president on this issue specifically.

Take it from Jim Collura, of the New England Fuel Institute and Commodity Markets Oversight Coalition -- who works on the oil markets speculation and manipulation issue 365 days a year -- when he says that it's been a frustrating effort. Or in other words, "It's always exciting when the president talks about this because he rarely does," Collura said.

Collura's group used more PR-friendly words in a press release applauding Obama's oil market manipulation speech on Tuesday, stating, "His President Obama's statements are long overdue and are encouraging, especially considering the harmful effect that unchecked financial activities have had on businesses, consumers and the broader economy."

I would emphasize the choice of the word "overdue."

"We'd written the president and urged him to step up the working group he formed, led by Attorney General Holder, but my sense is that the working group met once and was inactive after that," Collura said.

The inactivity on oil speculation and manipulation goes all the way from the White House to the primary federal agency, the Commodity Futures Trading Commission, overseeing the self-regulated commodity exchanges.

In mid-March, a group with which Collura works representing industries -- airlines, truckers, fueling companies and petroleum marketers -- that need to hedge fuel prices for actual business reasons, sent a letter to the CFTC asking why its Energy and Environmental Markets Advisory Committee (EEMAC) -- created by the Dodd-Frank Act, hadn't held a meeting since 2009.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs