Senate advances anti-speculation measure

WASHINGTON, July 22 (UPI) -- The U.S. Senate Tuesday voted unanimously to advance legislation that would curb oil speculation.

The Senate voted 94-0 to allow debate to proceed on the measure, which has the support of the Democratic leadership.

The vote came as the daily AAA Fuel Gauge survey showed prices averaging $4.055 a gallon of gasoline, compared to $2.968 last July.

"The reason we have oil at $130, $140, $145 a barrel -- like a roman candle going up, up, up -- is because we have excessive, relentless speculation in these markets," Sen. Byron Dorgan, D-N.D., said.

CNN quoted Mark Cooper of the Consumer Federation of America as saying there's no logical explanation for what he estimates is a $40 to $60 premium on the price of a barrel of oil. Light sweet crude was selling for $127.89 a barrel shortly before the close Tuesday on the New York Mercantile Exchange, off $3.15 from Monday's close and down from a record $147 July 11.

The White House, however, downplayed the significance of the Senate vote. Spokeswoman Dana Perino said supply-and-demand plays a more significant role than speculation.