We have a politician here in Connecticut who recognizes that the price of oil is determined by commodities traders.
He had an unusual proposition. I’m wondering if you think it would have any effect.
He is suggesting that commodities traders would have to demonstrate that they are capable of accepting delivery of the oil that they purchased in order to be eligible to trade it.
That would most certainly drive the price up to $10 a gallon in no time.
And someone should ask the politician to tell them where he would "allow" the commodities traders to build storage facilities. And how long after site surveys, EPA regs, endangered species regulations, zoning, inland/wetlands surveys, etc., etc. would construction begin? IF all those things pass AND the local town politicians accept it in their backyard, would the traders be allowed to trade while all this is going on?
And would the traders have to have over 50 different storage facilities for each blend of fuel?
Someone should suggest that this politician should just take his 60+ cents per gallon state tax on fuel and stick to things he understands like why ice is cold and water is wet.