US airline lobbyists expect some form of legislation to crack down on speculative trading in oil, but the effects that the potential legislation could have on record fuel costs are uncertain.

Air Transport Association of America (ATA) chief economist John Heimlich, says he is “confident that we’ll see action this year” on bills introduced in the US House and the Senate that would extend regulatory limits on oil speculation.

Airlines and others have called for an end to the so-called ‘Enron loophole’ that allows traders to cover with cash far less of their trade than is required by a stock broker in an equity or shares deal. Those carriers also seek greater transparency in speculative trades.

A number of oil traders and investment analysts have estimated at recent congressional hearings the cost of oil would drop by as much as $70 a barrel if various new regulations take effect. Congressman Bart St

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