IPAA Letter to CFTC Registering Concerns on Russian Manipulation of Natural Gas Markets

IPAA Letter to CFTC Registering Concerns on Russian Manipulation of Natural Gas Markets

Dear Chairman Behnam:

…Over the past 20 years, Russia has moved aggressively to link Europe’s economy to Russia’s natural gas. Russia’s war with Ukraine creates wide ranging international issues regarding natural gas. Clearly, one of these issues is volatility in the natural gas markets both in Europe and the United States. Significantly, it also gives Russia, Gazprom or their agents the possibility to utilize “perfect information” to manipulate the markets for energy commodities in both the United States and Europe.

Hopefully, the Commodity Futures Trading Commission (CFTC) is already investigating this possibility. If so, IPAA would like to know that is the case and, if not, IPAA strongly encourages the CFTC to begin an investigation under its granted authorization.

Specifically, IPAA is concerned about the following four items/issues:

  1. Excessive speculation
  2. Market manipulation, squeezes and corners
  3. Market liquidity for bona fide hedgers
  4. Price discovery disruption

IPAA would also like to know if there is any joint investigation with the CFTC’s counterparts in Europe, such as the European Commission. …

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