The price of oil edged up again yesterday (Tuesday), before settling at $137 a barrel flat, as concerns about short-term supplies continues to overwhelm Saudi Arabia’s recent pledge to boost production. With Saudi Arabia offering some, albeit limited, cooperation, Congress has turned its ire on speculators and investment banks.

First, demand from China and India was to blame for soaring oil prices. Then the weak dollar, the member nations of OPEC, Big Oil, and now investment banks take their turn in the rotation as politicians scramble to find a suitable scapegoat in an election year.

Lawmakers have introduced nine different bills concerning speculation in the oil market. Four separate hearings have been scheduled for this week, including Monday’s hearing before the House Energy and Commerce Committee concerning foreign trade regulation.

"I have dark suspicions about the effects that unchecked speculation and possible market manipulation are having on the price of crude oil and petroleum products," Committee Chairman John Dingell said. "Congress should act to determine the precise effects that manipulation and speculation are having on energy prices, and work to identify where there are gaps in regulation that allow this rampant speculation."

Dingell suggested Congress set firm limits on the size of energy speculators’ positions, require full disclosure of all energy trading from investment banks, and prevent pension funds from investing in commodities to diversify their holdings.

Five of the nine proposed bills involve the regulation of foreign oil trading. Some proposals would allow only American investors to trade oil on regulated exchanges, while others would have the U.S. Commodity Futures Trading Commission collect data from foreign trade boards.

For support, the committee turned to a panel of energy-market participants who testified that tighter regulation of the market would take the air out of oil prices.

"We’re not talking about [an oil price] bubble; we’re talking about a tumor," said Michael Masters, of Masters Capital Management. "It grows and grows, and it’s hurtful as it expands. But now we have discovered the tumor and we should take it out immediately."

Masters said that proper regulation of oil futures trading would cut prices back down to $70 a barrel in 30 days.

"I firmly believe that the current record oil price in excess of $135 per barrel is inflated," Fadel Gheit, managing director and senior oil analyst at Oppenheimer & Co. (OPY), said. "I believe, based on supply and demand fundamentals, crude oil prices should not be above $60 per barrel."

Afterwards, Rep.