Oil Traders Take More Heat

At another hearing on speculation and oil prices, Congress debates measures for stronger regulation

A hedge fund manager suggested in a June 23 congressional hearing that lawmakers could cut oil and gasoline prices in half by further regulating oil futures trading and reining in speculative trading. "We're not talking about [an oil price] bubble; we're talking about a tumor," said Michael Masters, managing member of Masters Capital Management, a Virgin Islands-based hedge fund. "It grows and grows, and it's hurtful as it expands. But now we have discovered the tumor and we should take it out immediately. The time to act is now."

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