ATA asking Congress to intervene in oil speculation
Quote:
Airlines Seek Oil-Trade Restrictions
The head of the U.S. Air Transport Association asked Congress Tuesday to impose new restrictions on "rampant oil speculation," which he said is driving jet fuel prices to record levels.
"Leading economic and commodities experts around the world believe crude oil prices today are unnecessarily high and distorted due, in large part, to market manipulation and excessive speculation," James C. May, the ATA's president and CEO, told a Senate panel examining the Commodity Futures Trading Commission and its oversight of oil futures markets.
World oil prices have approached $140 a barrel this week, part of an unrelenting runup this year that has pushed jet fuel prices beyond $4 a gallon and diesel motor fuel close to $5 a gallon.
May said airlines, facing fuel costs this year that will exceed their fuel spending in the first four years of the decade combined, have cut a combined 14,000 jobs and flights to 100 communities to rein in spending.
"We are asking for Congress to take steps now - not 60 to 90 days from now - to totally close the loopholes and make the market more transparent and balanced, to ensure a level playing field for all," May said.
"If Congress does not act soon, this country will not have a viable airline industry."
