Retail gasoline price increased 15% after Iran's nuclear weapon program became a world event in the last few weeks. A lot of hot money flew into crude oil future contracts. Crude oil price jumped from $90 to $109 per barrel. US economy recovery is at risk. Last year CME Group increased margin requirements on silver future contracts. This measure pushed all hot money out of silver contracts. Silver price dropped from above $50 to $35 per ounce. SEC and Treasury Dept. should learn from this chapter. We shall force CME Group to increase margin requirement if oil price jumps above $120 per barrel. This will push hot money out of crude oil contracts. This measure will push crude oil price back to the price level where crude oil supply meets its demand.
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