Cantwell, Inslee want probe into high oil prices

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By Associated Press

Summary

With oil prices topping $110 per barrel, two Washington state members of Congress say the Justice Department should investigate possible price-fixing or market manipulation by oil and gas companies.

Story Published: Apr 21, 2008 at 4:31 PM PST

Cantwell, Inslee want probe into high oil prices
WASHINGTON (AP) - With oil prices topping $110 per barrel, two Washington state members of Congress say the Justice Department should investigate possible price-fixing or market manipulation by oil and gas companies.

Sen. Maria Cantwell and Rep. Jay Inslee say consumers are getting gouged by prices that now average $3.50 a gallon nationwide. The record prices are dragging the economy into recession and "can't be explained by historic market forces," the two Democrats said in a letter Monday to President Bush.

Bush and Attorney General Michael Mukasey should appoint a new Enron-style task force to examine abnormalities in the oil and gas markets and "get to the bottom of what's wreaking havoc on our economy," Cantwell and Inslee said.

The lawmakers said the Justice Department's Corporate Fraud Task Force should be revised to include a new Oil and Gas Market Fraud Task Force that would coordinate federal agency efforts to help restore consumer confidence that energy prices are fair. The Federal Trade Commission should be included as part of the task force, they said.

Spokesman Brian Roehrkasse said the Justice Department was reviewing the letter.

He said the department's Corporate Fraud Task Force has actively investigated instances of manipulation and attempted manipulation in the energy markets by numerous energy companies, including Enron and its affiliates, BP, and American Electric Power. The task force actions have resulted in monetary penalties totaling about $430 million against 25 companies, and criminal indictments against 42 individuals and companies, Roehrkasse said.

"Where evidence of criminal wrong doing exists the department will continue to investigate it," he said.