Oil prices could be rigged by traders warns G20 report

[deminks]

http://www.bbc.co.uk/news/business-18856018

According to the International Organization of Securities Commissions (IOSCO), the current system of oil price reporting is "susceptible to manipulation or distortion."

Benchmark prices are compiled by price reporting agencies. The biggest, Platts, says "there is absolutely no similarity" between Libor and oil.

(snip)

Traders at various banks voluntarily report the prices they pay for oil contracts to Platts, Argus or one of their competitors. The price reporting agency use a number of trades to decide what the benchmark price, quoted to the outside world, should be.

IOSCO said that "this creates opportunity for a trader to submit a partial picture, i.e. an incomplete set of its trades in order to influence the assessment to the trader's advantage."

(end snip)

The plot thickens...

[RagAss]

1. NO SHIT !!

[IDemo]

2. In other news,

Brilliant round object is seen in sky during daylight hours.

[marmar]

3. I think we're an hour past 'could be'

[BumRushDaShow]

4. Once they are forced to take any modicum of delivery

their gig will be up.

[Wounded Bear]

5. Well, I guess we should be glad they're talking about it...

at long last.

Change that "could be" to "have been for many years", though. I'd say that's more accurate.

[theophilus]

6. I am shocked! Shocked I tell you!

At least it is being talked about. Maybe this is a first step in the right direction. Maybe.