While investors and funds are not responsible for high oil prices in general, Optiver Holding BV could be one of the bad seeds.
The U.S. Commodity Futures Trading Commission has charged the Dutch trading fund with manipulating and attempting to manipulate energy markets on the NYMEX.
Here’s more, from Bloomberg.com:
- The commission’s complaint alleges the company tried to “bully the market” by buying large volumes of futures contracts to influence prices. The alleged scheme resulted in a $1 million profit to the defendants, the commission said.
- “Although this alleged energy trading scheme lasted only several days in March 2007, even short-term distortions of prices will not be tolerated by the commission,” Walter Lukken, acting CFTC chairman, said in Washington. A spokesman for Optiver in Chicago couldn’t immediately be reached for comment.
- The commission took what it called the “extraordinary step” earlier this year of publicly stating it had begun a nationwide investigation last December into trading, transportation, storage and purchase of crude oil. This is the first enforcement action to arise from that investigation.
Read the full story here.
While no one wants someone who broke the law to get away with it, I’m afraid this investigation and the possible curb on speculation could really hurt the free market. If this turns out to be true, lawmakers could see this as a sign that they have a great scapegoat. They’ll encourage more limits, and…well…let’s not follow that to it’s logical conclusion. Let’s just hope people remain reasonable.
Hah!
