ATA calls on CFTC to limit oil speculation

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The Commodity Futures Trading Commission must act to increase transparency in energy markets and curtail excessive speculation by establishing aggregate position limits, said Steven Graham, vice president of Schneider National Inc., during an Aug. 5 commission hearing. Testifying for the American Trucking Associations, Graham said that such measures would reduce volatility and ensure that current commodity prices are connected to the market fundamentals of supply and demand.

“Diesel fuel is the lifeblood of the trucking industry, and sudden fluctuations in operating expenses, especially fuel, can devastate trucking companies,” Graham said. “Increasing transparency and setting position limits while preserving the ability of commercial entities to hedge fuel purchases will strengthen the link between commodity prices and market fundamentals.”