CFTC charges traders over oil price

[kpete]

Source: Financial Times



CFTC 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.


Read more: http://www.ft.com/intl/cms/s/0/dc5136aa-8633-11e0-9e2c-00144feabdc0.html#axzz1NNHEQYEz

[Thrill]

1. Bernie Sanders said last week

this needed to happen

[sharesunited]

2. U.S. Dept. of Energy can crush the longs any time we want.

Sell short aggressively against the Strategic Petroleum Reserve.

Cover those shorts at lower prices once the manipulated rally breaks down.

Speculators go to the poor house, and not a drop of oil needs to be released from the SPR.