Randy Powers: Huge Missed Opportunity for Senators Obama & McCain and the World?

MORAGA, Calif., July 2 /PRNewswire/ -- On June 23 Rep. Bart Stupak (D-MI)
chaired a hearing conducted by the House Energy & Commerce Oversight &
Investigations Subcommittee. This hearing has been largely ignored.
The following oil industry analysts, investment portfolio managers and
commodities futures advisors were among the panel members that testified:
-- Fadel Gheit, Oppenheimer & Co.
-- Roger Diwan, PFC Energy
-- Michael Masters, Masters Capital Management
-- Dr. Edward Kropels, Energy Security Analysis

They testified that a true price of a barrel of oil based on supply and
demand dynamics is currently $60 to $65. The difference between these prices
and $140+ is speculation on 'paper barrels of oil.'
Unanimously, they testified that the price of a barrel of crude oil would
return to $60 to $65 within 30 days if 3 trading rule changes were implemented
immediately:
1. Increase the margin of oil futures from 2% to 50% to match the margin
requirements for stocks.
2. Reduce the size of the commodities market for 'paper barrels of oil'
to equal the physical amount of real barrels of oil available for delivery.
3. Insist on full transparency in all energy asset trading positions.

The four panelists also testified to other industry facts:

-- Few investors would be hurt if these changes to commodities trading
rules were implemented. If the rules were changed, investors would lose most
of their oil futures value, but would gain billions from the dramatic stock
recovery that would positively impact the remainder of their assets.
-- There is not an imbalance in the supply / demand of oil. the fact that
the world's largest producer of crude oil, Russia, has reduced drilling output
by 90%, and that US oil companies are not drilling the 10,000 US land leases
they currently hold, due to the current balance in the supply and demand for
oil.
-- US oil companies base their drilling infrastructure investment
decisions on $40 to $60 per barrel oil prices -- the true value of their
product.
Either Senators Obama or McCain could make a huge impact by introducing an
Oil Speculation Limits bill that incorporated this expert panel's unanimous
suggestions. I urge everyone to watch this hearing on the CSPAN website to
learn this extraordinary information for themselves.
Contact Info:
Randy Powers
925-377-3007/

SOURCE Randy Powers

Randy Powers, +1-925-377-3007