CFTC charges oil traders with price manipulation

The US Commodity Futures Trading Commission cited three companies and two traders with attempting to manipulate crude oil prices on the New York Mercantile Exchange.

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, May 26 -- The US Commodity Futures Trading Commission cited three companies and two traders with attempting to manipulate crude oil prices on the New York Mercantile Exchange.

The group made more than $50 million of unlawful profits from the scheme from January through April 2008, CFTC officials said.

The CFTC cited Parnon Energy Inc. of California, Arcadia Petroleum Ltd. of Great Britain, Arcadia Energy (Suisse) SA of Switzerland, James T. Dyer of Australia, and Nicholas J. Wildgoose of California in a civil complaint filed in US District Court for New York’s Southern District. Dyer and Wildgoose allegedly directed the trading.

The defendants allegedly bought large quantities of West Texas Intermediate crude to dominate and control already tight supplies at the Cushing, Okla., delivery point, according to the civil complaint.

The CFTC seeks permanent injunctive relief, disgorgement, restitution, trading and registration bans, imposition of civil monetary penalties, and other remedial relief from the defendants.

Contact Nick Snow at nicks@pennwell.com.

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