It appears taht the Commodities Futures Trading Commission (CFTC) is looking toward an investigation to see if market arbitrage has artificially inflated prices, while this is not regulation, the results of the study may result in new regulations.

In particular, they are looking at the role of commodities index funds on this process.

Interestingly enough, this was not brought on by the oil price run up, but by spikes in cotton prices, which have increased despite events which ordinarily would have lowered prices.

As a part of moving toward greater regulation of the commodities market, Senators Levin and Feinstein are moving toward granting the CFTC explicit regulatory authority on trades on the London Oil Bourse executed from the US, on the basis of the fact that the exchange has physical terminals here.