Archived

This topic is now archived and is closed to further replies.

Breaking: Big Oil Fixing Prices, also Sky is Blue..

15 posts in this topic

Posted

http://www.rollingstone.com/politics/blogs/taibblog/everything-is-rigged-continued-european-commission-raids-oil-companies-in-price-fixing-probe-20130515

 

 

 

According to numerous reports, the European Commission regulators yesterday raided the offices of oil companies in London, the Netherlands and Norway as part of an investigation into possible price-rigging in the oil markets. The targeted companies include BP, Shell and the Norweigan company Statoil. The Guardian explains that officials believe that oil companies colluded to manipulate pricing data:

 the alleged price collusion, which may have been going on since 2002, could have had a "huge impact" on the price of petrol at the pumps "potentially harming final consumers".

Lord Oakeshott, former Liberal Democrat Treasury spokesman, said the alleged rigging of oil prices was "as serious as rigging Libor" – which led to 
banks being fined hundreds of millions of pounds
.

The inquiry also involves Platts, the world's largest oil price reporting agency. The concept here is very similar to both the LIBOR scandal, which involved banks manipulating the benchmark rates for interest rates, and to the possible rigging of interest rate swap prices through the manipulation of ISDAfix, the benchmark rate for those instruments, which is also the subject of a regulatory probe.



Read more: http://www.rollingstone.com/politics/blogs/taibblog/everything-is-rigged-continued-european-commission-raids-oil-companies-in-price-fixing-probe-20130515#ixzz2TSaw1SYI 
Follow us: @rollingstone on Twitter | RollingStone on Facebook

 

 

Share this post


Link to post
Share on other sites

Posted

tumblr_inline_mkskco1MMx1qz4rgp.gif
3 people like this

Share this post


Link to post
Share on other sites

Posted

Yeah, the banks got fined for rigging the LIBOR, but they're still doing it.

 

I figure that the same will be true of the oil companies.

Share this post


Link to post
Share on other sites

Posted

Free the markets!  Free the pan-national conglomerates from the tyranny of governmental regulations!  Hate representative government, love oligopolies!

1 person likes this

Share this post


Link to post
Share on other sites

Posted

So if its fixed, why does it fluctuate so much? 

Share this post


Link to post
Share on other sites

Posted

So if its fixed, why does it fluctuate so much? 

 

So people will ask questions like this.  No one said oil companies are stupid, just greedy.

Share this post


Link to post
Share on other sites

Posted

fug em. 

Share this post


Link to post
Share on other sites

Posted

 

Breaking: Big Oil Fixing Prices, also Sky is Blue..

 

Not in China.

Share this post


Link to post
Share on other sites

Posted

Yeah, the banks got fined for rigging the LIBOR, but they're still doing it.

 

I figure that the same will be true of the oil companies.

When the fines are acceptable loss compared to profits

Share this post


Link to post
Share on other sites

Posted

So people will ask questions like this.  No one said oil companies are stupid, just greedy.

 

If they had control, and still allowed prices to fluctuate the way they have over the last 10 years or so, they would be guilty of stupidty. 

 

The price of oil is one of the most volatile commodidties, and control is an illusion.  They have some influence over prices, but no one group can truly control the price of a global commodity. Supply and demand is the number one influence over prices.  Not the only influence, but definitely the most important one. 

 

Btw, I believe its the oil traders, not necessarily the companies that are being accused.  Although certainly the relationship between the two is gray.

 

 

That being said, might be some good news out of this.  Maybe prices will come down even more than they have over the last few months.

 

Oil Markets fall

 

 

 

In fact, if there have indeed been price distortions, then these could as well have nudged prices down as forced them up—because oil traders make money on price movements, not just rises.

It is a complicated picture and the EU’s competition authorities are likely to take months or years before deciding whether they suspect any oil companies of having committed a crime. Meanwhile, a reform of the oil markets is unlikely to come anytime soon.

 

 

 

 

Share this post


Link to post
Share on other sites

Posted

The price of oil is one of the most volatile commodidties, and control is an illusion.  They have some influence over prices, but no one group can truly control the price of a global commodity. Supply and demand is the number one influence over prices.  Not the only influence, but definitely the most important one. 

Of course, that is obvious. 

 

What should also be obvious is many corporations, in oil and banking for instance, have grown too large and powerful for the public good. 

 

They no longer fear violating a nation's laws, because the worst that will happen is the company in question will need to pay some relatively miniscule fines.  The executives intentionally violating the laws will be protected under the corporate umbrella and whatever losses are incurred will be recovered through overcharging in another scheme somewhere down the road.

Share this post


Link to post
Share on other sites

Posted

Of course, that is obvious. 

 

What should also be obvious is many corporations, in oil and banking for instance, have grown too large and powerful for the public good. 

 

They no longer fear violating a nation's laws, because the worst that will happen is the company in question will need to pay some relatively miniscule fines.  The executives intentionally violating the laws will be protected under the corporate umbrella and whatever losses are incurred will be recovered through overcharging in another scheme somewhere down the road.

 

 

The most powerful one, Aramco, is untouchable. 

1 person likes this

Share this post


Link to post
Share on other sites