Oil Price Fraud......
Oil price manipulation and fraud.
They said oil prices went up because of supply and demand. They lied.
They said oil prices went up because China was using so much oil. They lied.
They said oil prices went up because we don’t drill enough in the USA. They lied.
Oil prices went up because of manipulation and fraud. Period! This was allowed to happen because of deregulation. The result is you have over paid for gas every time you have filled up for the last 13 years.
Some times people get robbed by a man holding a gun. Other times people get robbed when they pull into a gas station and fill up. If you have pulled into a gas station and filled up….. then congrats….you have been robbed.
http://www.bloomberg.com/news/2013-11-06/brent-crude-traders-claim-proof-bfoe-boys-rigged-market.html
Some of the world’s biggest oil companies including BP Plc (BP/), Statoil ASA (STL), and Royal Dutch Shell Plc conspired with Morgan Stanley and energy traders including Vitol Group to manipulate the closely watched spot prices for Brent crude oil for more than a decade
The North Sea benchmark is used to price more than half the world’s crude and helps determine where costs are headed for fuels including gasoline and heating oil.
The case, which follows at least six other U.S. lawsuits alleging price-fixing in the Brent market, provides what appears to be the most detailed description yet of the alleged manipulations and lays out a possible road map for regulators investigating the matter.
The traders who brought it -- who include a former director of the New York Mercantile Exchange, or Nymex, one of the markets where contracts for future Brent deliveries are traded - - allege they paid “artificial and anticompetitive prices” for Brent futures. They also outline attempts to manipulate prices for Russian Urals crude and cite instances when the spread between Brent and Dubai grades of crude may have been rigged.
The oil companies and energy-trading houses, which include Trafigura Beheer BV and Phibro Trading LLC, submitted false and misleading information to Platts, an energy news and price publisher whose quotes are used by traders worldwide
Over 85 pages, the plaintiffs describe how the market allegedly showed that the Dated Brent spot price was artificially driven up or down by the defendants, depending on what would profit them most in swap, futures or spot markets. They allege the defendants used methods including “spoofing” - - placing orders that move markets with the intention of canceling them later.
Platts’ methodology “can be easily gamed by market participants that make false, inaccurate or misleading trades,” the plaintiff traders alleged. BFOE refers to the four oil grades -- Brent, Forties, Oseberg and Ekofisk -- that collectively make up the Dated Brent benchmark.
The suit provides an insight into one of the less-transparent corners of global trading -- the $5.7 trillion-a-year market in physical commodities, including metals and agricultural products as well as fuel, where spot trading is largely private. By contrast, stocks and futures transactions are conducted on regulated exchanges with prices visible to all.
They said oil prices went up because of supply and demand. They lied.
They said oil prices went up because China was using so much oil. They lied.
They said oil prices went up because we don’t drill enough in the USA. They lied.
Oil prices went up because of manipulation and fraud. Period! This was allowed to happen because of deregulation. The result is you have over paid for gas every time you have filled up for the last 13 years.
Some times people get robbed by a man holding a gun. Other times people get robbed when they pull into a gas station and fill up. If you have pulled into a gas station and filled up….. then congrats….you have been robbed.
http://www.bloomberg.com/news/2013-11-06/brent-crude-traders-claim-proof-bfoe-boys-rigged-market.html
Some of the world’s biggest oil companies including BP Plc (BP/), Statoil ASA (STL), and Royal Dutch Shell Plc conspired with Morgan Stanley and energy traders including Vitol Group to manipulate the closely watched spot prices for Brent crude oil for more than a decade
The North Sea benchmark is used to price more than half the world’s crude and helps determine where costs are headed for fuels including gasoline and heating oil.
The case, which follows at least six other U.S. lawsuits alleging price-fixing in the Brent market, provides what appears to be the most detailed description yet of the alleged manipulations and lays out a possible road map for regulators investigating the matter.
The traders who brought it -- who include a former director of the New York Mercantile Exchange, or Nymex, one of the markets where contracts for future Brent deliveries are traded - - allege they paid “artificial and anticompetitive prices” for Brent futures. They also outline attempts to manipulate prices for Russian Urals crude and cite instances when the spread between Brent and Dubai grades of crude may have been rigged.
The oil companies and energy-trading houses, which include Trafigura Beheer BV and Phibro Trading LLC, submitted false and misleading information to Platts, an energy news and price publisher whose quotes are used by traders worldwide
Over 85 pages, the plaintiffs describe how the market allegedly showed that the Dated Brent spot price was artificially driven up or down by the defendants, depending on what would profit them most in swap, futures or spot markets. They allege the defendants used methods including “spoofing” - - placing orders that move markets with the intention of canceling them later.
Platts’ methodology “can be easily gamed by market participants that make false, inaccurate or misleading trades,” the plaintiff traders alleged. BFOE refers to the four oil grades -- Brent, Forties, Oseberg and Ekofisk -- that collectively make up the Dated Brent benchmark.
The suit provides an insight into one of the less-transparent corners of global trading -- the $5.7 trillion-a-year market in physical commodities, including metals and agricultural products as well as fuel, where spot trading is largely private. By contrast, stocks and futures transactions are conducted on regulated exchanges with prices visible to all.
posted by res17 at
November 27, 2013
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