Meanwhile, analysts at Friedman, Billings, Ramsey & Co. Inc. (FBR), Arlington, Va., reported strong odds that the US Congress would pass a NOPEC bill (No Oil Producing and Exporting Cartels) for antitrust prosecution of OPEC members.

Horsnell cited "the continuing head of steam in Washington behind various potential market intervention measures. In particular, institutional investors seem ever closer to being placed in the regulatory crosshairs." However, he said, "We see institutional investment as a stabilizing and improving factor for commodities markets, and we believe that holding commodities has a valuable role to play within a balanced asset portfolio."

In addition, banning institutional holdings of commodities could lead to "some serious market distortions and volatility." Horsnell said, "A clumsy implementation could potentially create forced trading and generate chaotic conditions and very artificial prices in the short term. Such a development would in turn discourage what is already far too slow a rate of investment and delay demand reactions. Indeed, it is likely to lay the basis for another surge in prices once market conditions normalized, while leaving long-term investment lower than it would have been."