FOR IMMEDIATE RELEASE
July 22, 2008
Brian Kennedy (202) 434-8200
No Evidence of Excessive Speculation Exists
IER Economist: “The law of supply and demand is working effectively, but Washington is effectively ignoring the law."
Washington, DC – Robert Murphy, resident economist at the Institute for Energy Research (IER), issued the following statement today as the U.S. Senate considered legislation to impose new regulations on domestic crude oil trading:
“If excessive speculation were a factor in the record-high prices for oil, we would see stockpiles of surplus supply somewhere in the global market,” Murphy said. “As much as it may foul the talking points of politicians in Washington, the fact of the matter is we’re seeing no such thing. The law of supply and demand is working effectively, but Washington is effectively ignoring the law. An increase in supply, not regulation, is what both the market and the consumer are searching for right now.”
Murphy is the author of the recent study, Speculators Fixing Oil Prices? Don’t Bet On It. He earned his Ph.D. in economics from New York University and has written over 100 articles on free-market economics and is the author of The Politically Incorrect Guide to Capitalism.
The Institute for Energy Research (IER) is a not-for-profit public foundation that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets. Founded in 1989, IER is funded entirely by tax deductible contributions from individuals, foundations and corporations. No financial support is sought for or accepted from government (taxpayers).