WEST PALM BEACH, FL (www.hedgeco.net) – German government authorities have stated that it will be investigating the role of hedge funds and speculators in bidding oil futures. According to news reports, Chancellor Gerhard Schroeder’s government will look into the role of hedge funds and speculators in bidding oil futures to record levels.
The German Economy and Labor Minister Wolfgang Clement said, “Like other experts, we think that at least $18 per barrel of the oil price is due to speculation and hedge funds play a role in it.” Clement further said, “We will look into the matter although it only makes sense if that happens on an international level.”
Schroeder’s administration has tried in the past to introduce hedge fund regulations internationally, but was unsuccessful when it brought the issue before the G8 nations meeting in Scotland. Both the United States and United Kingdom opposed such measures. Schroeder’s battle with hedge funds began with the removal of the German head of the stock market, when it was shown that hedge fund investors spearheaded such move.
According to recent German pools, Schroeder is likely to lose in the upcoming German national elections in September 18. According to news reports, the opposition candidate, Angela Merkel may win the election. Merkel’s position on the hedge fund regulation issue is not yet well established, but experts believe he may not pursue aggressive regulatory measures as pursued by his predecessor.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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