More Oil Traders

Ari J. Officer wrote an article for TIME magazine arguing the need for more oil traders. He says the Obama Administration can’t stabilize prices by regulating speculators. According to the article, limiting trading would make the oil-futures market smaller than it currently is, something Officer believes is dangerous.


“The oil-futures market is tiny compared with the physical oil market: less than 3% of the world’s oil consumption over the next year is accounted for in the open interest.”


Because oil is an international commodity and the U.S. government can’t regulate the global market, Officer believes that the U.S. “should not outsource markets by placing a divide between America and the rest of the world.”

Check out the article. It is an interesting read.