(Bloomberg News) President Barack Obama said a Justice Department probe will examine the role of "traders and speculators" in oil markets and how they contribute to high gas prices.
"The attorney general's putting together a team whose job it us to root out any cases of fraud or manipulation in the oil markets that might affect gas prices, and that includes the role of traders and speculators," Obama said today in Reno, Nevada. "We are going to make sure that no one is taking advantage of American consumers for their own short-term gain."
The administration today created a working group to explore whether oil and gasoline prices are being driven higher by illegal manipulation.
The group, which includes representatives of federal agencies and state attorneys general, will check for fraud, collusion or misrepresentation at the retail and wholesale level, the Justice Department said in a statement today. The group also will examine investor practices and the role of speculators and index traders in oil futures markets.
Obama faces political pressure over rising gasoline prices. Crude oil futures have increased 22% and gasoline surged 34% this year as Middle East unrest reduced supply and the global economic rebound bolstered fuel demand. Both futures contracts touched the highest levels this month since the records reached in 2008.
Gasoline Prices
The average price nationwide of regular gasoline at the pump was $3.84 a gallon yesterday, the highest since Sept. 16, 2008, AAA said on its website.
"It hurts. Every time you go to work a big chunk of your paycheck is eaten up," Obama said. "This gas issue is serious."
The president is on a cross-country trip to sell his deficit reduction plan, speaking today in Reno after earlier holding town-hall discussions in Palo Alto, California and Annandale, Virginia.
The White House and House Republicans have offered separate plans to reduce cumulative budget deficits by $4 trillion, over 12 years and 10 years respectively.