By JERRY A. DICOLO
WASHINGTON—U.S. commodity regulators are examining suspicious trading in oil futures markets ahead of Thursday’s news that countries around the world would release crude from strategic stockpiles, a person familiar with the matter said.
The fact that oil prices sank hours before the International Energy Agency announced a coordinated release of 60 million barrels of oil could indicate that some market participants got wind of the decision early, the person said. Traders also have raised the possibility of a leak.
The Commodity Futures Trading Commission is reviewing market data to find clues as to whether some traders may have received an advance tip on the IEA’s plan, the person said.
A CFTC spokesman declined to comment. The IEA couldn’t be reached for comment.
Trading on leaked data isn’t illegal in commodity markets, and companies often use inside information to gain an edge. That is in contrast with the more tightly regulated stock markets, where investors can be prosecuted for trading on material, nonpublic information.
Continue here: CFTC Scrutinizes Suspicious Oil Trade Ahead of IEA Move – WSJ.com.
