Airlines boost calls for oil speculation crackdown

The Stop Oil Speculation coalition of nearly 40 airlines, trucking companies and unions said at a press conference lawmakers must close loopholes that allow traders to skirt federal restrictions on the purchase of contracts for oil and other commodities.

"This crisis deserves the full attention of Congress--now--not next week, not next month or next year," said James May, president of the Air Transport Association of America, which represents the nation's largest airlines.

Oil prices spiked to a new record above $147 a barrel Friday, prompted in part by hostilities in the Middle East and another drop in the value of the dollar.

The airline industry's main trade group expects companies to lose $10 billion this year--on par with their worst combined loss ever--solely because of soaring fuel costs.

The proposals aired at Friday's event are not new. Federal lawmakers already have introduced about 30 bills aimed at tightening restrictions on oil trading as pressure mounts on Congress to do something to lower $4-plus gas prices.

Sens. Joe Lieberman, I-Conn., and Susan Collins, R-Maine, introduced legislation Friday that would give the Commodity Futures Trading Commission more authority and resources to monitor trading on unregulated over-the-counter and foreign markets. Sens. Carl Levin, D-Mich., and Dianne Feinstein, D-Calif., introduced a similar bill.

While a growing number in Congress are convinced "excessive speculation" is responsible for record gas prices, many experts say it's unclear what effect, if any, investors have had on prices.

And though Democratic leaders Sen. Harry Reid of Nevada and Rep. Nancy Pelosi of California favor quick action to reform speculation, the lawmakers directly responsible for that effort are not eager for a quick fix.

The House Agriculture Committee, which has oversight of commodity trading, wrapped up three days of hearings on the issue Friday. Committee Chairman Collin Peterson, D-N.D., said he wants to wait until September before moving ahead with legislation. The CFTC expects to have additional information at that time on the level of trading on unregulated markets.