Senator Maria Cantwell, Democrat of Washington State, in partnership with Robert McCullough of McCullough Research, today released a report that the senator's press release says " shows that the dramatic rise in oil prices in June, and the subsequent fall in price in July, can't be explained by any of the fundamentals of supply and demand. Instead, it could be a result of the trading strategies of major market players. Cantwell and McCullough said new data collection tools are needed so that federal agencies can identify the culprits and stop any market manipulation."

Cantwell's press release goes further to say:

"Mr. McCullough’s research clearly shows that oil prices are no longer tied to supply and demand,” said Cantwell. “Statistically, this research shows that prices are spiking absent of a crisis like a natural disaster or supply disruption. However, prices then fell when Congress began serious debate on how to crack down on those who may be trying to manipulate the markets. Research shows that traders may well be in control of the market, not supply and demand, and consumers have been left paying the price."

“There is evidence of a troubling concentration of ownership in the oil markets,” said McCullough. “This allows a few players to have undue influence on setting prices. However, the regulators are driving blind through this crisis since they are collecting such little information that reveals who is doing what in the market."

While many reasons have been offered as to why oil prices have been rising or falling on any given day, McCullough Research identified 25 significant events, or public announcements, made in June and July 2008 that historically have been the type that causes the future price of oil to rise or fall. These announcements, in most cases, involved the fundamentals of oil supply and demand. In a few cases they concerned national energy policy, which would be expected to affect future prices.

Cantwell plans to introduce legislation when Congress returns in September requiring the Commodity Futures Trading Commission (CFTC), Energy Information Administration (EIA), Federal Trade Commission (FTC) and Federal Energy Regulatory Commission (FERC), to implement new data collection tools.