House approves measure to curb speculation on energy

The House of Representatives on Thursday approved a bill aimed at curbing excessive energy-market speculation as crude oil fell in after-hours trading. Earlier in the trading day, it reached a record $140.39 a barrel.

The bill, which passed 402 to 19, would require the Commodity Futures Trading Commission to consider imposing limits on the size of the stake each speculative investor can own, as well as raising margin requirements, the amount of money required to trade. The vote came after the oil price record was set.

Crude oil for August delivery fell as much as $1.03, or 0.7%, to $138.61 a barrel in after-hours trading on the New York Mercantile Exchange. It was at $139.38 a barrel at 9:35 a.m. today in Singapore.

The House passed the measure just hours before recessing for a week for the Independence Day holiday, when members typically return home and meet constituents.

Rising retail gasoline prices, which averaged $4.07 a gallon Wednesday and reached a high of $4.08 on June 16, according to the AAA, have angered voters. Gasoline prices are up 34% this year.

The measure calls on the CFTC to use its emergency powers to “curb immediately the role of excessive speculation” in any market it oversees in which energy futures or swaps are traded.