Change the way oil prices are set

In response to the letter from Mr. James Mooney of Arlington Heights, Yes, gas prices have retreated due to falling oil prices. But I don't share in your jubilation. After the Arab Oil Embargo of the '70s oil became a tradable commodity to prevent a recurrence of that sort of control. The system worked well for many years and something happened to cause oil to ascend like it did. One can argue supply and demand but in my opinion it was the greed of traders. If you'll recall one trader in particular was found to be directly responsible for crossing over the $100 a barrel threshold because he "wanted to be the first to pay $100 for a barrel of oil". This is price manipulation.

Consider the costs involved with bringing a barrel of domestically produced oil to market compared to a barrel of foreign oil. Wouldn't it stand to reason that oil from a domestic well would cost less than a barrel of foreign oil? I believe it would but under the current market system oil looses its identity and simply becomes a barrel of oil. This is why we have oil pumped from Alaska's North Slope shipped overseas.

I'm certain the oil companies have traders at the markets. It would not be far-fetched to believe these traders would behave in the best interests of the oil companies by keeping prices propped up as best as they can.

So, Mr. Mooney, I have to agree with you that the oil companies are not directly responsible for the exorbitant gas prices we saw earlier this year. Those high prices were the result of commodity traders being greedy. We need to fix the trading vehicle. It's in desperate need of overhaul and repair.

Paul M. Lyczak

Schaumburg