May

30

US oil probe focusing on price manipulation

Filed Under Business | Posted By Jennifer Sullivan |

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On Friday the Wall Street Journal reported ,’’ A US regulatory probe into oil trading and is stressing on short-term maangement of benchmark crude prices and the use of information linked to essential oil storage tanks to influence prices.’

The newspaper has quoted that people are aware of enforcement priorities of the Commodity Futures Trading Commission and said that the CFTC is doing many oil investigations and most of those are related to one another.

‘’It would improve the insepection of energy trading by tracking index funds and had an agreement with the U.K.’s Financial Services Authority and ICE Futures Europe for exchanging information on power contracts’’, said the US futures market regulator.

Last week, US crude oil step up a record of USD 135.09 a barrel and is increased by more than 40 percent this year. Under pressure from US law makers, CFTC enforcement chief Gregory Mocek has quoted that the agency had around 60 fradualant investigations of crude-oil prices through an enormous used price-reporting system operated by Platts.

The newspaper stated that energy companies and traders many a times have issued orders used by Platts to ascertain its reported prices for oil trading and then used the prices to gain profits in other markets. According to Journal, Platts stated that its system has protected against the frauds. Another area of concern for CFTC regulators is whether the rude-oil storage tanks’s owner utlize their knowledge to bet on oil-futures markets as he could spread wrong information about the full or empty tanks.



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