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


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#1 Kurb

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Posted 16 May 2013 - 08:02 AM

http://www.rollingst...-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 commission said 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.rollingst...5#ixzz2TSaw1SYI 
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#2 Darth Biscuit

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Posted 16 May 2013 - 08:04 AM

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#3 Jase

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Posted 16 May 2013 - 08:06 AM

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.



#4 NanuqoftheNorth

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Posted 16 May 2013 - 12:38 PM

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



#5 Davidson Deac II

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Posted 16 May 2013 - 03:10 PM

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



#6 NanuqoftheNorth

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Posted 16 May 2013 - 03:34 PM

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.



#7 Proudiddy

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Posted 16 May 2013 - 03:39 PM

fug em. 



#8 Niner National

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Posted 16 May 2013 - 03:43 PM

 

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

 

Not in China.



#9 Gazi

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Posted 16 May 2013 - 03:50 PM

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



#10 Davidson Deac II

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Posted 16 May 2013 - 05:01 PM

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.

 

 

 

 



#11 NanuqoftheNorth

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Posted 16 May 2013 - 05:11 PM

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.



#12 Davidson Deac II

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Posted 16 May 2013 - 05:14 PM

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. 



#13 Davidson Deac II

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Posted 16 May 2013 - 05:16 PM

Btw, the big focus appears to be Platt, which is not an oil company.



#14 NanuqoftheNorth

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Posted 16 May 2013 - 05:20 PM

The most powerful one, Aramco, is untouchable. 

 

The dividing line between government and big business is becoming harder to discern in the USA also.  

 

Does the country run the oil company or does the oil company run the country? 



#15 NanuqoftheNorth

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Posted 16 May 2013 - 05:36 PM

Btw, the big focus appears to be Platt, which is not an oil company.

 

The banking and oil industries may be oligopolies, but they haven't cornered the market on avarice (even if at times it seems that way).

 

“Even small distortions of assessed prices may have a huge impact on the prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers,” the European Commission said in statement. “Any such behavior, if established, may amount to violations of European antitrust rules that prohibit cartels and restrictive business practices and abuses of a dominant market position.”

 

http://qz.com/84706/...-investigation/




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