On Wednesday July 17th, the Senate Agriculture, Nutrition and Forestry Committee held a hearing regarding the reauthorization of the Commodities Futures Trading Commission (CFTC). The CFTC is charged with implementing the regulations set forth in the Dodd Frank Wall Street Reform and Consumer Protection Act. ALPA played an active role in ensuring that Dodd Frank included strong oversight and transparency provisions specific to oil speculation while protecting the ability of our employers to continue legitimately hedging on fuel prices. ALPA policy has been to get rid of unnecessary speculation in the oil markets in an effort to help reduce our fuel costs. Dodd Frank plays a key role in our effort.
During the hearing last Wednesday, Senator Donnelly (D-IN) made a passionate and informative statement before the committee. Other witnesses with whom we have worked on oil speculation regulation did an excellent job of explaining the issue of oil speculation during the time allotted to Senator Donnelly. Additionally, another panel witness, Gene Guilford, provided very informative testimony regarding oil speculation and how the market functions. ALPA and the aviation industry have long been supportive of ridding the commodities markets of rampant speculation in the oil market. This speculation continues to create inflated fuel prices for our companies and consumers at the pump as well as unwanted volatility in the oil market.
