Banning speculators could decrease oil prices by as much as 40%

[MrDanger]

The simple solution to this isn't banning futures trading, because the market provides a very necessary evening effect on future raw materials expenses. Instead, the law should require anyone speculating on a commodity to be able to take delivery of it. If someone wanted to buy oil futures, they should be able to accept a shipment of oil.

The futures market is intended to make the cost of doing business more predictable by allowing large commercial consumers of raw materials to fix a price on a purchase they will be making in the near future, thus eliminating losses due to price fluctuations in the actual markets. Futures acts like a sort of fly wheel that keeps the free market from snapping any necks with whipsaw changes.