Indictments for oil price manipulation handed down

[Eikon]

http://biz.yahoo.com/cnnm/080724/072408_cftc.html

Looks like the govy busted some traders for manipulating the markets.

I bet there are a lot more to come.

[Encryptshun]

This is rediculous.

First off, what law did these traders break?Second, what was the actual result of their actions in terms of altering the market?

This is a simple example of "straw-man" tactics by a government who is trying to inspire false confidence in its population in order to stimulate the economy.

[mtcookson]

First off, what law did these traders break?

"manipulation of the markets"

[OriginalWheelman]

First off, what law did these traders break?

The Commodity Futures Trading Commission accused Optiver Holding, two of its subsidiaries and three employees with manipulation and attempted manipulation of crude oil, heating oil and gasoline futures on the New York Mercantile Exchange.

...

The CFTC said the firm attempted to "bang the close" by amassing large positions just before markets closed - forcing prices up - then selling them quickly to drive prices down and pocketing the difference.

The alleged manipulation was attempted 19 times on 11 days in March 2007, the agency said. In at least five of those 19 times, traders succeeded in driving prices higher twice and lower three times, according to the CFTC.

...

The charges are civil, not criminal.

Second, what was the actual result of their actions in terms of altering the market?

Cumulatively, $4 / gallon gasoline.

[rn79870]

This is rediculous.

First off, what law did these traders break?

I'm assuming it is something along the lines of price fixing. Conspiring with others to set artificially higher prices. I'm guessing here though.

Second, what was the actual result of their actions in terms of altering the market?

I don't know if they had to be successful at the manipulation or if it is like any "conspiracy" or "attempted" crime.

If they were successful, look what they did to the auto industry, the tourist industry, the airline industry, etc. If they are convicted, they are going to face some heavy fines as well as some hefty civil suits.

[Encryptshun]

Okay, so they apparently attempted this 19 times in March of 2007. they only succeeded 5 times, two of which created higher gas prices, and the other 3 LOWERED them.

So how exactly is something they did 16 months ago responsible for $4/gal gas?

[Eikon]

This is simply evidence that it happens. It takes the government a while to piece together the evidence to make a case out of it.

What this tells me is that what a lot of people in our country have been wondering or fearing is actually true.. The price of gas has been influenced by traders and the prices that are killing the average family in our country today are somewhat influenced by the greed of traders.

I'm quite sure that these folks weren't the only ones doing it, and the frequency and influence of these activities most likely got much more severe between then and now.

Keep your eyes on this topic in the news in the future. It may lead to more restrictions over the commodity trading market, which may help settle the severe swings we've been seeing.

[WDRacing]

I don't know how much you know about the stock market and what traders are allowed to do...but what they did IS illegal, and that is enough in itself. The outcome has nothing to do with anything. It's a headline because oil is a headline...

Anyone that manipulates a market usually gets heavy fines, loses their license and often does time. And I totally agree...

This could be the tip of the spear...we know that oil doesn't need to cost what it does. We also know that the ceo's have made record earnings even with the price inflation. That means WE are getting gouged...

I hope they uncover ALL kinds of bad traders and they are all put to a slow death...why? Cause FU that's why...

[96Qowner]

All big shot Wall Street traders know about this law. You aren't allowed to trade in a manner that purposely distorts the market. These guys are busted, period. The FTC checks time and volume of trading activity. This is a clear violation.

[Encryptshun]

CFTC stressed that the price changes were small and the manipulation was isolated, and that the investigation has nothing to do with the recent heat the agency has taken on Capitol Hill over rising oil prices.

CFTC has repeatedly said that speculators are not to blame for rising oil prices, and any cases of price manipulation - such as the one brought Thursday - have only a small, if any, effect on oil prices.

Just to make sure this stays in context.

[heliochrome85]

PWN3D

now where is my .99 Gas?

I want some techron in that ****.

[AZhitman]

PWN3D

now where is my .99 Gas?

I want some techron in that ****.

Dude, I like you a ton.

[OriginalWheelman]

So how exactly is something they did 16 months ago responsible for $4/gal gas?

5 instances by 1 company can not do it. 4,000 instances by multiple people / companies can. Also, this is just dealing with artificial inflation add that to the natural inflation because of the increased demand and cumulatively you have $4/ gallon gas.

[heliochrome85]

likewise.

You'll find us arabs have a funny side, once you get past the three layers of anger, hatred, and scowls.

you know whats sad, i actually remember the days of 75 cent gas. circa 1996-1997. those were the days. man, to have lived the golden days... see saddam wasnt so bad. remove saddam, watch gas sky rocket.

[skylndrftr]

The law is the law and this is sleazy. however I highly doubt these idiots have many peers in being this obvious about it. I do believe thhough that there is a lot of illegal or at least unethical conduct going on here, the ones who really affect oil prices are much better at it.

Interesting though that a year ago this wouldn't even be news.

[smockers83]

It is against the law in that any attempt to manipulate a market in any way is illegal. That's why there are also anti-trust laws against monopolies as monopolies can control an entire market and manipulate it in order to make monopoly profits. No, these 5 instances have not single-handedly run us up to $4+ gas, but the investigation is only beginning to come together. The CIA constantly monitors the stock markets and other markets to find unusual things, although probably not for things like this.

[rn79870]

Something is working, Gas is down about 35 cents a gallon from it's high. Isn't it interesting how they condition us to high prices. We screamed when it hit 4 bucks, so they take it up to almost 5, then they bring it down to 4.40 and we're happy and quiet.

[WDRacing]

They've been doing that for years...once it goes up it never comes down. Even if we drill ALL over the east coast and open up ALL the parks and refuges to drilling...the price will stay where it's at. How else will Exxon/others be able to have increasingly higher profit earning year after year?

OMG, there's an oil shortage s we need to raise the cost of oil...I wonder why we're making more money now then we ever were even though there's a shortage.

They are friggin criminal poopyhead that have us by the balls. Then they "donate" a healthy sum of money to our Gov to pay for the outright rape of Americans. So who's worse? The people getting paid off, or the people doing the raping.

Just one more reason to throw down the Gov as a whole and start over.

[Encryptshun]

Here's a nice little chart of historical world oil price averages, cross-referenced with economic points of interest.

http://www.eia.doe.gov/cabs/AOMC/Overview.html

[rn79870]

I see that #35, Wide use of netback pricing lowered the price of oil. What is "netback pricing," and would it work again?

[Encryptshun]

http://www.oxfordenergy.org/pdfs/WPM10.pdf

[skylndrftr]

Just one more reason to throw down the Gov as a whole and start over.

+10000000000