The top ranked American futures market regulator, On Thursday, has finally revealed its much awaited proposal which would help crack down on the speculations surrounding the oil and gas markets, setting position limits so high that they would have an effect on only a handful of the major market players, much to the relief of worrying traders.

Commodity Futures Trading Commission, with the aim to try and precent excessive concentration in trading of energy, issued proposals to cap the number of contracts that a company can hold across exchanges. The limits imposed were less strict than expected, and also offered some exemptions for swaps dealers who "hedge financial exposure", like Goldman Sachs.

"It seems to me as though the CFTC has really pulled back. A few months ago, they sounded rabid about going after speculators in energy markets. But it looks like their bark was worse than their bite", said John Brodman, an ex-Energy Department official with the Bush administration.

Traders are relieved, but it seems that the CFTC will now have much explaining to do as to why it has taken a lenient approach to regulations when the lawmakers have been demanding official rules since the price of oil hiked to a record $147 per barrel in 2008.