ATA Seeks Action Against Oil Speculation Amid Rise in Diesel Prices

ARLINGTON, Va., June 22 /PRNewswire-USNewswire/ -- In an effort to mitigate
dramatic spikes in fuel prices similar to those in 2008, the American Trucking
Associations (ATA) called on Congress today to increase the transparency of
futures markets and impose reasonable aggregate position limits on energy
commodities.

"Since March, the price of diesel has risen 56 cents per gallon despite
supplies being at a historical high and diesel demand at a 9-year low," said
ATA President and CEO Bill Graves. "It seems that more is at play than just
the fundamentals of supply and demand."

While the price of crude oil is off from last summer's record-high levels, the
commodity has seen a dramatic and inexplicable run-up in price over the past
five months. Despite U.S. oil inventories near a 19-year high and oil demand
down 6 percent from a year earlier, the price of crude has more than doubled
since February.

"Demand for petroleum products in the United States is lower today than it was
10 years ago and supply is higher today than it was in 1982," said ATA Vice
President and Chief Economist Bob Costello. "In addition, the International
Energy Agency recently predicted that global demand for oil will drop by about
2.5 million barrels a day this year compared to last year -- the sharpest
year-over-year decline in nearly 30 years."

According to data from the Energy Information Administration (EIA), crude
inventories in May were at their highest levels in almost two decades. Based
on current levels of demand, commercial petroleum inventories amount to about
60 days' worth of supply -- that's 12 days more than a year ago, and 11 days
more than the five-year average for this time of the year.

The trucking industry spent a record $150.9 billion purchasing diesel fuel
last year and with relatively low freight volumes as a result of the global
recession, the industry cannot afford a dramatic price spike in diesel fuel
like the one in 2008. Diesel fuel is typically the second-highest expense for
a trucking fleet, accounting for up to 25 percent of total operating expenses.

Since the price of oil and refined products cannot be fully explained by
examining supply and demand, ATA looks to other factors that may be
influencing the steep increase in this vital energy commodity.

"While we don't believe excessive speculation accounts for all of the recent
run-up in oil prices, it has to have played a part," said ATA Vice President &
Regulatory Affairs Counsel Richard Moskowitz. "ATA is concerned that
speculation may be increasing, as investors seek investments that can insulate
them from anticipated inflation that many believe is coming as a result of the
U.S. and other governments' massive economic stimulus packages."

ATA recognizes that the recent fall in the dollar's value has played a role in
the rising price of oil. Since February, the value of the dollar has fallen
approximately 8 percent compared to the Euro. Yet this 8 percent drop in the
dollar does not translate to a 100 percent increase in the price of a barrel
of oil.

Financial participation via speculation in energy markets is necessary to a
certain extent. Without speculators, trucking companies could not hedge their
fuel purchases and would be even more exposed to fuel price changes. While
some speculation is necessary to make a market, excessive speculation may fuel
a dramatic price change as large institutions use derivatives and futures
contracts as an asset-accumulation tool.

The American Trucking Associations is the largest national trade association
for the trucking industry. Through a federation of other trucking groups,
industry-related conferences, and its 50 affiliated state trucking
associations, ATA represents more than 37,000 members covering every type of
motor carrier in the United States.

SOURCE American Trucking Associations

Clayton Boyce of the American Trucking Associations, +1-703-838-7902,
+1-703-408-3716