Calls for crack down on oil speculation increase

CAPITOL HILL — Congressional Democrats want to tighten regulations on large investors that they blame for propping up oil prices.

A House subcommittee discussed oil market speculation at a hearing yesterday.

Democrats rolled out a number of suggested remedies for the oil market, including higher margin requirements for investors.

The acting head of the Commodity Futures Trading Commission warns higher margin requirements could drive traders out of the U.S. markets. But Washington state Democrat Jay Inslee says "even a small reduction in oil prices“ would have a "titanic effect.”

Many Republicans, oil analysts and regulators say high oil prices are a reflection of other factors including the falling dollar, Middle East unrest and more demand from Asia.

Texas Republican Joe Barton is among those who are blaming insufficient supply for the skyrocketing prices and calling for more production of oil, natural gas and coal.