 |
‘Rogue broker’ blamed for oil spike
Javier Blas and Izabella Kaminska
Financial Times
Friday, July 3, 2009
The startling spike in oil prices to their highest level this year on Tuesday was caused by a rogue broker who placed a massive bet in the Brent oil market, triggering almost $10m (€7m) of losses for his company.
PVM Oil Associates, the world’s largest over-the-counter oil brokerage, said on Thursday it had been the “victim of unauthorised trading”. The privately owned company said that as a result of the unauthorised trades it had been forced to close substantial volumes of futures contracts at a loss.
(ARTICLE CONTINUES BELOW)
London-based PVM said it had informed the Financial Services Authority, the UK regulator. But officials at the Commodity Futures Trading Commission, the US regulator, claimed they had been kept in the dark for several hours in spite of an agreement between the watchdogs last year to exchange such market-sensitive information spontaneously.
Oil traders in London and New York said the “unauthorised trading” explained the exceptional spike in business activity and prices in the early hours of Tuesday that some initially thought must have been caused by a geopolitical event. “Trading volumes rose overnight and prices jumped more than $2 a barrel without apparent justification,” a senior oil trader in New York said.
Prison
Planet.tv Members Can Watch
Fall Of The Republic
Right Now Online -
Don't Miss Out! Get
Your Subscription Today!
CANCER CONSPIRACY? Are
"they" suppressing the cure? Will YOU
be the next victim? Learn
the Secret Truth! - READ FULL STORY
-
- Social bookmarks
- Email this article
-
- Print this page
5 Responses to “‘Rogue broker’ blamed for oil spike”
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |||||||
| By N2H | |||||||||||||||||||||||||||||||||||||||||
July 3rd, 2009 at 4:37 am
Was the brokers name Madoff ( get it he Made off with the loot ), Oswald, Van der loo or Bin Laden? Please, enough with your grade school mythology.
July 3rd, 2009 at 10:55 am
A lot of money has been made by speculators using the Commodities Futures Modernization Act of 2000 http://www.cftc.gov/files/ogc/ogchr5660.pdf It is the very reason these “rogues” can speculate. It’s called the “Enron Loophole”. Our so-called “representatives in Congress” have no backbone to repeal this Act that was never heard in front of the people. Former Senator Phil Gramm, his wife former CFTC Chairman and Enron Board member Wendy Gramm and several other insiders are fully responsible for this, along with the “Credit Default Swaps” that were created by the passage of the CFMA when attached to the last budget bill Clinton signed into law. This Act is the gift that keeps on giving!
July 3rd, 2009 at 1:25 pm
Some broker placing a bet….
These things have real world consequences. If oil prices skyrocket, people freeze to death. If blackouts are caused by shenanigans with the electricity supply, auto wrecks occur due to inadequate street lighting.
If it was just a bunch of rich fucks losing their shirts over shit like this, I’d just sit around and laugh at them. Sadly, it isn’t.
July 3rd, 2009 at 3:12 pm
saw this on the news and it sounds to me like it was a guy that caught with his hand in the cookie jar.
July 3rd, 2009 at 8:06 pm
Total BS. It’s impossible for one broker to cause a spike, It’s like you trying to spike the pH of the ocean by pissing in it. Offsetting hedges and shorts would unspike him and cause him to lose his ass faster than he could ever cause a price spike.
Prices spiked because the dollar is toilet paper.