Energy prices : supply, demand or speculation? / John T. Perry, editor.

Format:

Book

Contributor:

Perry, John T.

Series:

Energy policies, politics and prices series.

Energy policies, politics and prices series

Language:

English

Subjects (All):

Fuel--Prices--Forecasting.

Fuel.

Energy policy.

Physical Description:

1 online resource (152 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, c2010.

Language Note:

English

Summary:

A lucid answer to the question of what causes energy prices to often widely fluctuate is hard to find. Is it supply, demand, speculation, manipulation, fear, price gauging by energy distributors or refiners or some hideous combination of all the above? This study provides basic information to try to solve this riddle.

Contents:

Intro

ENERGY PRICES: SUPPLY,DEMANDOR SPECULATION?

CONTENTS

PREFACE

SPECULATION AND ENERGY PRICES:LEGISLATIVE RESPONSES

SUMMARY

OVERVIEW

LEGISLATIVE PROPOSALS: CLOSING LOOPHOLES

The Enron Loophole

The London Loophole

The Swaps Loophole

Other Legislative Approaches

Raising Margins

Increasing CFTC Resources

Emergency Actions

Studies of the Market

APPENDIX: MECHANICS OF FUTURES CONTRACTS

The Mechanics of a Futures Contract

End Notes

COMMODITY FUTURES TRADINGCOMMISSION:REPORT TO CONGRESSIONAL ADDRESSEES

Why GAO Did This Study

What GAO Recommends

What GAO Found

RESULTS IN BRIEF

BACKGROUND

Functions of Futures Markets

Relationship between Futures and Spot Prices

Changes in CFTC Oversight Authority and Resource Levels

SEVERAL FACTORS HAVE CAUSED CHANGES IN THEENERGY MARKETS, POTENTIALLY AFFECTING PRICES

Tight Supply and Rising Demand for Physical EnergyCommodities Contributed to the Increase in Futures and SpotPrices

The Effects of Relatively High but Falling Volatility and aGrowing Volume of Derivatives Trading on Energy Prices AreUnclear

CFTC OVERSEES EXCHANGES AND HAS LIMITEDAUTHORITY OVER OTHER DERIVATIVES MARKETS

CFTC Has General Oversight Authority over FuturesExchanges, but Its Publicly Reported Information on TheseExchanges Has Not Kept Pace with Changing MarketConditions

CFTC Authority over Exempt Commercial Markets Consists ofEnforcing the Antifraud and Antimanipulation Provisions of theCEA and Administering Certain Reporting Requirements

Although CFTC Can Enforce Antimanipulation and ApplicableAntifraud Provisions of the CEA in OTC Energy DerivativesMarkets and Exempt Commercial Markets, Views Vary aboutthe Sufficiency of Its Regulatory Authority with Respect to Off-Exchange Energy Derivatives.

CFTC ENGAGES IN SURVEILLANCE ACTIVITIES ANDENFORCEMENT ACTIVITIES, BUT THE EFFECTIVENESS OFTHESE ACTIVITIES IS LARGELY UNCERTAIN

CFTC Oversight Includes Surveillance of Energy FuturesTrading, but the Full Extent of Follow-up Activities Is Uncertain

CFTC Oversees Trading on Futures Exchanges

Actions Taken by CFTC Staff to Inquire about Potential Problems MayNot Always Be Documented

CFTC Coordinates Its Surveillance and Oversight Activitieswith Others

CFTC Energy-Related Enforcement Actions Generally InvolvedFalse Reporting and Attempted Manipulation, and EnforcementActions Often Are Coordinated with Other Authorities

CFTC's Enforcement Program Received a Mixed OMB Ratingbut Lacks Effective Outcome-Based Performance Measures

CONCLUSIONS

MATTER FOR CONGRESSIONAL CONSIDERATION

RECOMMENDATIONS FOR EXECUTIVE ACTION

AGENCY COMMENTS

List of Congressional Addressees

APPENDIX I: SCOPE AND METHODOLOGY

APPENDIX II: TYPES OF CONTRACTS AND TRANSACTIONSFOR ENERGY COMMODITIES IN THE PHYSICAL ANDFINANCIAL MARKETS

APPENDIX III: NEW YORK MERCANTILE EXCHANGESURVEILLANCE AND ENFORCEMENT ACTIVITIES

NYMEX Conducts Surveillance of Both Market and TradingActivities

NYMEX Uses Information from Surveillance Activities andOther Sources for Enforcement Cases

APPENDIX IV: COMMODITY FUTURES TRADINGCOMMISSION'S ENERGY-RELATED ENFORCEMENTACTIONS,AUGUST 2001 - SEPTEMBER 2006

APPENDIX V: COMMENTS FROM THE COMMODITYFUTURES TRADING COMMISSION

RELATED GAO PRODUCTS

REGULATION OF ENERGY DERIVATIVES

HISTORICAL DEVELOPMENT OF DERIVATIVESREGULATION

MANIPULATION IN ENERGY MARKETS

LEGISLATIVE PROPOSALS ON DERIVATIVES REGULATION

COMMODITY FUTURES TRADINGCOMMISSIONTRENDS IN ENERGY DERIVATIVES MARKETSRAISE QUESTIONS ABOUT CFTC'SOVERSIGHT

What GAO Recommends.

What GAO Found

SEVERAL FACTORS HAVE CAUSED CHANGES IN THEENERGY MARKETS, POTENTIALLY AFFECTING ENERGYPRICES

Various Changes in the Physical Market Contributed to RisingPrices

The Effect on Prices of Relatively High but Falling Volatility anda Growing Volume of Trading in Derivatives Is Unclear

CFTC OVERSEES EXCHANGES AND HAS LIMITEDAUTHORITYOVER OTHER DERIVATIVES MARKETS

CFTC has General Oversight Authority over FuturesExchanges, but Information on These Exchanges Reported tothe Public Has Not Kept Pace with Changing Market Conditions

CFTC Authority over Exempt Commercial Markets and OTCMarkets is Limited, and Views Vary about the Sufficiency of ItsRegulatory Authority with Respect to Off-Exchange EnergyDerivatives

CFTC ENGAGES IN LARGE TRADER REPORTING,SURVEILLANCE, AND ENFORCEMENT ACTIVITIES, BUTTHE EFFECTIVENESS OF THE ACTIVITIES IS LARGELYUNCERTAIN

CFTC Energy-Related Enforcement Actions Generally involvedAllegations of False Reporting and Attempted Manipulation, butits Program Received a Mixed Rating and Lacks EffectiveOutcome-Based Performance Measures

CHAPTER SOURCES

INDEX.

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

ISBN:

1-61122-344-X

OCLC:

847870491