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Feinstein Blames Gas Prices on 'Illegal Collusion' by Oil Companies

Sen. Dianne Feinstein accuses oil companies of engineering the current spike in gas prices. She calls on the Federal Trade Commission to take action.

On Sunday, California's senior senator charged that California's record gasoline prices may be the "results of an illegal short squeeze'' engineered by the handful of companies that refine gas here.

In a letter to the Federal Trade Commission, Sen. Dianne Feinstein, cited news reports that said Tesoro Corporation -- whose refinery in the South Bay went down for maintenance -- was taken advantage of by other gas suppliers "either through collusion or the use of market power.''

"Publicly-available data appears to confirm that market fundamentals are not to blame for rising gas prices in California,'' the California democrat wrote in a letter to FTC chairman Jon Leibowitz.

Feinstein also called on the FTC to monitor energy price and production data gathered by other government agencies, to watch for "fraud, manipulation or other malicious trading practices.''

She also urged the FTC to establish a permanent gas and oil oversight market committee, similar to the Federal Energy Regulatory Commission's oversight of the natural gas and electricity markets.

Feinstein said "California consumers are all-too-familiar with energy price spikes which cannot be explained by market fundamentals, and which turn out years later to have been the result of malicious and manipulative trading activity.

She reminded the FTC of past frauds, like the 2000-2001 electrical crisis, which turned out to have been caused by market manipulation by Enronand other traders. That fraud cost the state an estimated $40 billion, caused rolling blackouts, and is cited by some historians as having cost Gov. Gray Davis his political career.

TELL US WHAT YOU THINK IN THE COMMENTS

Does the spike in gas prices seem like part of the normal market fluctuation, or do you think California consumers are being fleeced?


Anon October 08, 2012 at 03:33 PM
Look at Dianne and Jerry trying to make it look like they care.
Net October 08, 2012 at 07:41 PM
Way to go Dianne! At least one person up there has figured this out. BIG OIL COLLUSION. They are probably worse than any big banksters and wallstreet mobsters.
ROBERT BLACKMEN October 09, 2012 at 12:42 AM
There all crooks and we have to pay to drive just to feed are family. Prices keep going up but the pay stays the same?what a joke
BK October 09, 2012 at 12:58 AM
I don't know if anyone saw on the tube the other day before the Hugo Chavez was reelected His statement was that the reason they can fill a Ford Expedition from bone dry for $3.00 is because the Americans are paying for them to be able to do so. I am not speaking $3.00 per gallon, but $3.00 from bone dry for the entire tank. They are the fourth largest exporter of oil to America. We should just cut the off and do our own thing. Why we are so afraid of doing that is beyond me. We have the technology and the ability to be self sufficient but we choose to not do it.
tweetledee October 09, 2012 at 11:58 AM
Jerry Brown is freaking out because his tax increase thats on life support is definetly not going to pass now...Boo Hoo Jerry..and Diane is worried because she running for re-election, Yeah probably collusion on the part of big oil companys but they wont get proof of it,The state allowed someone to figure out how to manipulate the regulation they put in place because we have too many of them..We need to Drill baby Drill, And kick out the Democraps.......
Elsinore 33 October 09, 2012 at 02:05 PM
Diane Feinstein has done nothing but ruin California, our military bases have closed, no off shore drilling, water diverted from the San Joquin valley turning a once fertile valley into a wasteland, and too many illegals who we pay for in welfare and she reaps the benefit in votes. It's all about votes for barbara, as far as she is concerned if she wins at any cost it is worth it, and our way of life in California is turning to crap at a fast pace. We aren't all rich like her friends in San francisco, and by the way have you visited SF lately, it has taken a turn tfor the worse. Strung out kids on speed and tons of very rough looking in your face homeless are everywhere, it is a dangerous city to visit, especially at night. I used to love CA until Barbara's far left policy has finally broken us.
TVOR October 09, 2012 at 02:27 PM
This is simply a political maneuver designed to make the old bag look good at election time. There have been "investigations" before but never any action. I wonder why............
Lash LaRue October 09, 2012 at 03:37 PM
To vote for a Democrat is to vote for the KKK and the Communist party. The Democrats voted in mass against the Civil Rights act and the KKK was a branch of the Democrat Party Sen Robert Byrd was a grand Dragon of the KKK. Todays Democrat party is a wing of the Communist Party that is why they showed Soviet Era battleships at the convention in North Carolina. The first grand wizard of the KKK was honored at the 1868 Democratic National Convention, no Democrats voted for the 14th Amendment to grant citizenship to former slaves and, to this day, the party website ignores those decades of racism, Three years after Appomattox, the 14th Amendment to the U.S. Constitution, granting blacks citizenship in the United States, came before Congress: 94 percent of Republicans endorsed it. The records of Congress reveal that not one Democrat either in the House or the Senate voted for the 14th Amendment.Three years after the Civil War, and the Democrats from the North as well as the South were still refusing to recognize any rights of citizenship for black Americans. South Carolina Gov. Wade Hampton at the 1868 Democratic National Convention inserted a clause in the party platform declaring the Congress' civil rights laws were "unconstitutional, revolutionary, and void." It was the same convention when Gen. Nathan Bedford Forrest, the first grand wizard of the KKK, was honored for his leadership.
jill smith October 09, 2012 at 03:46 PM
Four more years of Obama and we will see allot more broken homeless people.
Antonio October 09, 2012 at 03:54 PM
What's your model state: Alabama, Mississippi?
Tom October 09, 2012 at 09:18 PM
Love how the politicans ALWAYS point to boggie men. Big Oil, Wall Street, Millionaries and Billionaires. They can never take responsibility for the laws and regulations that they create and the negative impacts of them. When is the last time we have built a refinery in this State? We cant get gas from other states because we have to have special gas. It's pure madness and whats worse is so many people buy into their lies. I would love to see Diane voted out in November, but I know that will never happen. I guess we in CA. will have to suffer a lot more before people start to wake up to what they are doing to us. If you think gas prices are high now, just wait until AB 32 in fully enatcted.
Diana October 09, 2012 at 09:25 PM
It's time for Californians to take this State back, vote them out!!!!!!!!!!!!!
Lash LaRue October 10, 2012 at 06:28 PM
http://www.westcentralmoinfo.com/10-10-Bank-Accounts-Beware-/14483428 We wanted to get the word out for everyone to check their bank accounts. I was shocked yesterday to see in our bank statement that $950.00 was taken from our Clinton Youth Baseball account and given to Obama for America. Peoplesmart.com is somehow connected because they withdrew money and then re-deposited it the same day. We have filed a complaint with the Missouri Attorney General but are concerned for others as some may not check their accounts regularly. If it can happen to our Youth Baseball it can happen to anyone. Thanks! Cindy Wirsig

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