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Investing in Futures, May Not Be Good For Floridas Future

July 25th, 2008 by flanews

The State is considering investing billions of dollars from its pension fund in oil futures. Some say the way oil is traded on the world market is the cause of high gas prices. Because of that fear, Whitney Ray tells us, the state could be helping raise the price at the pump.

Hear it Here: Investing in Futures, May Not Be Good For Floridas Future

Its a question, Congressmen and people at the pump want answered.

Does it have to do with the cost of the oil, said Guthrie Chibanduza.

The oil companies theyre huh, theyve got the prices so jacked up, said John Holley.

Why do I think gas prices are so high, said Anthony Marin. Hum, well you got me.

Jim Smith with Florida Petroleum Marketers says speculators are to blame for 4 dollar a gallon gas.

There are days on that international exchange where that same barrel of oil is traded four or five times, said Smith.

And each time a barrel is traded, the price goes up. Smith says without speculators the price of a gallon of gas would be $2.50. The State is considering investing billions from its pension fund in commodities, like oil.

Weve been evaluating commodities slowly and cautiously now for several years. We currently dont have any investments in commodities nor do we plan any in the immediate future, but we continue to evaluate them, said Dennis MacKee, the Director of Communications for the State Board of Administration.

If Florida invests in oil, there is fear the state would be contributing to higher gas prices.

Oil speculation on those international markets have driven the price of crude oil way up beyond what it should be, said Smith.

Congress is investigating the role speculators play in the record high oil prices. A measure to limit trading in the oil futures market failed in the U.S. Senate Friday.

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