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Financial TimesCFTC charges traders over oil price
By Jack Farchy and Javier Blas in London and Gregory Meyer in New York
Published: May 24 2011 20:06 | Last updated: May 25 2011 12:54
The US commodities regulator has charged a trading house and two individuals with manipulating oil prices in 2008 by amassing dominant positions in the physical market that created the impression of a shortage.
The charge is only the second oil manipulation case the US Commodity Futures Trading Commission has filed since launching a “nationwide crude oil investigation” three years ago as the cost of West Texas Intermediate, the US benchmark, surged towards a record high of $147 a barrel.
The CFTC’s complaint comes as high oil prices have again triggered a political backlash in Washington, with a group of lawmakers demanding a crackdown on speculators and oil companies.
The regulator alleged that Parnon Energy, a US oil trader, together with its Swiss and UK affiliates Arcadia Energy (Suisse) and Arcadia Petroleum, made more than $50m from the scheme in January and March 2008.
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