Gas Prices: The Wall Street Effect

Sen. Bernie Sanders calls for curb to oil speculation on Wall Street.
3:18 | 03/05/12

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Transcript for Gas Prices: The Wall Street Effect
Begin with a world news now special report on Wall Street's influence on the prices that all of us -- at the pump. And those prices just went up of course since triple -- national average for a gallon of gas is now three dollars and 76 cents and -- up eight cents over the past week. And 27 cents higher than it was a year ago as ABC's mark Greenblatt reports today. At least one lawmaker will demand action. Call -- the Wall Street gas pump premium. With a little man doesn't sit -- and all food delivery -- Michael Longo just learned about it it's terrible situation. Has always been doing about -- The question -- Wall Street banks really push the prices you pay at the pump higher. While they cash in on bats that they make on future prices of gas. Well now the Saint Louis Federal Reserve weighs -- with a 56 page newly updated report. It says two main factors drive gas prices up first global demand shocks like tensions in the Middle East. But next the Fed concludes speculation. Played a significant role in the oil price increase between 2004 and 2008. And its subsequent collapse. Adding as much as 15%. To prices and says that that can explain part of the recent increase in oil prices all over this country. People are really being hurt financially senator Bernie Sanders of Vermont is fighting back. This is money come but right out of their paycheck today Sanders will send out a letter to the Commodity Futures Trading Commission. That says as the costs for American people to fill their gas tanks continues to skyrocket. The CFTC continues to drag its feet on imposing strict speculation limits. To eliminate prevent or diminish excessive oil speculation. And calling for immediate action. -- -- so far he has pledges from 67 other members of congress to cosigned the letter by the end of the day. What we want to do is limit the amount of -- that any individual. Corporation can control on any given day. It's a call for action on the heels of an ABC news report. From a week and a half ago. Where one of the CFTC's sitting commissioners spoke out yet I'm fired up. Bart Chilton is one of five presidential appointees who regulates oil futures traders and he showed us this other Wall Street research report. Which spells out just how much extra the price of oil goes -- because Wall Street gambles on. There aren't any market put out speculators -- the excessive speculation were concerned about. Which is why senator Sanders wants to limit those big bats if we do that. There are varying estimates but we think we -- low oil prices mark Greenblatt ABC news. New York Times and you hope that other lawmakers will jump on that bandwagon they put their John Hancock on that -- and get something done since is that is seems to -- -- the speculators this place such a critical role all -- -- -- explaining this to me earlier asked yesterday but it is a good job on his part as well and and you see. Members -- you know congress just kind of jump on a -- exceed that reports a great job reporting. From -- to show you the power of journalism and what other than what we can do exactly exactly imagine that nice work tomorrow.

This transcript has been automatically generated and may not be 100% accurate.

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