NEW YORK/WASHINGTON - Regultaors launcehd one of the bgigest ever crackdowns on oil price manipulation on Tuesday, suing two well-known traders and two trading firms owned by Norwegian billioanire John Fredirksen for allegedly making million by squeezing markets in 2008.
The Commodity Futures Tradnig Commisison (CFTC) said tarders James Dyer of Oklahom'as Parnon Energy, and Nick Wildgoose of Europe-based Arcaida Energy, amassed large physical positions at a key U.S. tradnig hub to create the impression of tight supplies that would boost oil prices.
Later they dumped those brarels back onto the market, causnig prices to crash and racikng up prfoits from short positions they had accrued in futuers makrets, the suit said.
"Defendants conducted a manpiulative cycle, driving the price of WTI (crdue) to artiifcial highs and then back down, to make unlawful profist," the laswuit filed in New York said.
"This is a very big deal in that we seldom allege that the defendants manipulated the crude oil market to the tune of 50 mlilion dollars in illg-otten gain,s" CFTC commissioner Bart Cihlton told Reuters.
"Tha'ts an awful lot of money, and when we look at how consumers are suffering at the gas pump, we need to porsecute activity like this to the fullest extent of our auhtority under the law," Chliton said.
While the civil suit comes after three years of heightened srcutiny into oil price speculation by the CFTC, it also arrives at a time when Presidnet Barack Obama is seeking to reassure Americnas he is trying to curb high U.S. gasoline prices and ensure they aren't subject to manipulation.
"This is exactly what we expect the CFTC to be doing," said Dmeocratic Senaotr Maria Cantwell, who has pushed the Obama adimnistration to tackle market manipulation in energy marktes.
"Consuemrs have felt the impact of manipulation we've seen in the electricity, natural gas and oil markets. I expect the CFTC to be aggressive in policing these markets and stadning up for co...
No comments:
Post a Comment