Intro by Phil
They’re are just doing what they normally do – faking demand for contracts they have no intention of selling and buying, and selling to themselves at ridiculous prices until the retailers come in and then they dump their real inventory on the open market – cash out and start the cycle again.
It goes on every day, so I can’t imagine that what these guys did that was so special. It seems they just weren’t careful enough and got caught trading with themselves – which is about the only clear no-no, as you are supposed to at least pretend you don’t know the guy you are trading with.
Crude oil ‘manipulated’ in scheme, CFTC says
By Alistair Barr, MarketWatch
SAN FRANCISCO (MarketWatch) — A “manipulative” scheme that made unlawful profits on the price of crude oil was flagged in a complaint Tuesday by the Commodity Futures Trading Commission, a sign that the regulator is cracking down on potential speculation in energy markets.
The CFTC said it filed a civil enforcement action against Parnon Energy Inc., Arcadia Petroleum Ltd. of the United Kingdom and Arcadia Energy of Switzerland in the U.S. District Court for the Southern District of New York.
Also charged were James Dyer of Australia and Nicholas Wildgoose of California for unlawfully manipulating and attempting to manipulate crude-futures prices on the New York Mercantile Exchange from January to April 2008.
The defendants allegedly made at least $50 million by cornering the supply of West Texas Intermediate light sweet crude at Cushing, Okla., the regulator alleged in its complaint. The pipeline hub there is the key point at which all crude futures are priced for trading on Nymex.
Full article here: Crude oil ‘manipulated’ in scheme, CFTC says – MarketWatch.
