Oil Could Be The Focus Of The Next Manipulation Scandal

[dipsydoodle]

Now that the Libor manipulation scandal has been revealed, it looks like oil prices could be the focus of the next search for misreporting. According to the International Organization of Securities Commissions (IOSCO), the current system of oil price reporting is “susceptible to manipulation or distortion.”

Comparisons to Libor manipulation have been made because oil prices, such as Brent, serve as a benchmark for trillions of dollars of securities and contracts.

There is the potential for market participants to manipulate oil price assessments published by price-reporting agencies (PRA) through the submission of false information and selective reporting of deals.

Traders at various banks voluntarily report the prices they pay for oil contracts to Platts and other PRAs. Platts, which provides the most influential assessment, uses a number of trades to decide what the benchmark price, quoted to the outside world, should be.

http://www.businessinsider.com/oil-could-be-the-focus-of-the-next-manipulation-scandal-2012-7

[1MeanBean]

1. Next?

LOL! It has already happened multiple times.

[KansDem]

2. KnR

I don't know how these investigations are proceeding. I would think the oligarchs could shut them down any time they want...

[meow2u3]

3. The solution to end oil price manipulation is simple

Force the speculators to take delivery of the oil--at the price they bid on--and watch the out-of-control oil prices start to plummet.

[aka-chmeee]

5. Hear! Hear!

Not Just Oil! Make that everything that is subject to speculation and manipulation. Reduce the amount of non-value-added price increases.

[aka-chmeee]

4. Everything that can be purchased is a target for manipulation,

Without going into a lengthy rant about actions of the very wealthy in the quest to acquire ALL wealth, I propose that a national language be adopted, not English, but "Baaaaaaaaaaaaaaaa".

[Javaman]

6. Never happen...

the oil corps own a huge stake of land in congress.

they are still able to rake in outrageous amounts of money through subsidies yet make world record profits.

Oil is the crack of the industrialized world.

addicts always complain when the price is up and cheer when the price is down.

we all blame the speculators for our addition, yet we don't stop using the product. The speculators laugh at us.

remember back in '08 when the price per barrel went up to 150? And a speculator was reported as saying "he just wanted to see if he could get the price that high?" and what was done about that? Nothing.

So thinking that oil is now going to be in the "bullseye" of some sort of magic inquiry of manipulation is frankly, down right comical.

the only time anything will ever get done to "reign" in the price manipulation of oil is when either the indentured servants aka the 3rd world slaves who cater to Saudi Arabian population get tired of being treated like animals or when it costs way to much for the average joe American moron drive the whole 1/16 of a mile to the 7/11 in his SUV to get his cheese doodles and big gulp.

We are children who cry for their bottle and are happy when we get it.

Life is changing dramatically before our eyes, yet the general population fixates on the mundane and inanity of reality stars.

we are a vapid nation.

[dipsydoodle]

7. The Barclays fine

was actioned outside of your Congress by your financial services oversight unit equivalent of the UK's FSA. As such nothing is impossible.

[Javaman]

8. wake me up only if a miracle happens.

in the mean time, what ever you have to tell yourself to keep you from having night terrors, have at it.