Last night, the Providence City Council passed a resolution urging the United States Senate to pass Senate Bill 3268, the “Stop Excessive Energy Speculation Act of 2008”. The resolution, sponsored by Ward Nine Councilman Miguel Luna, cites the rising cost of energy and the numerous experts who have attributed large portions of this increase to speculation.

“The trading of commodities futures was illegal until 2000 and, not surprisingly, since they were legalized we’ve seen dramatic increases in energy prices,” said Councilman Luna. He pointed out that earlier this year the price of a barrel of oil reached $147, nearly six times the price six years earlier.

The resolution references evidence of an emerging “energy bubble” similar to the internet and housing bubbles that led to economic downturn in the last ten years and stated that a bursting of the energy bubble could cause even more disastrous problems for the American economy.

“Studies have shown that speculators are responsible for about 25% of the increase in energy costs,” said Luna. He went on to say that he supports the Senate legislation sponsored by Majority Leader Harry Reid because it will “eliminate excessive energy speculation and put money back in the wallets of the hardworking people here in Rhode Island and around the country who are hurting because of fuel costs.”

The resolution, which was co-sponsored by Councilmen John J. Igliozzi and Leon F. Tejada, was passed unanimously and copies of it will be sent to Senator Reid and the other sponsors of the Stop Excessive Energy Speculation Act, as well as the members of Senate Committee on Homeland Security and Government Affairs.