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Speculators accounted for 71% of oil contracts of the NYMEX

Reuters have obtained statistics from the Commodity Futures Trading Commission (CFTC)¬†which shows that speculators accounted for 71% of the benchmark oil contracts on the New York Mercantile Exchange (NYMEX), the world’s largest for energy trading, as of April 2008.

The story also looks at what impact the proposed regulation by CFTC chairman Gary Gensler could have on big players like Goldman Sachs, which has made a killing from speculating on oil trading:

Fewer than one out of every 10 barrels of oil traded on U.S. futures exchanges gets delivered to consumers, an equation that may change under sweeping new restrictions being weighed by the government’s top commodities regulator.

With plans to curb speculation in energy trading, U.S. Commodity Futures Trading Commission chairman Gary Gensler could push banks and funds, which now buy and sell the lion’s share of oil and gas contracts, to seek opportunities elsewhere, industry watchers say. READ HERE