CFTC fines Statoil for market manipulation

The U.S. Commodity Futures Buying and selling Fee stated Tuesday that it fined Norway’s Statoil ASA $four million for making an attempt to govern power markets in 2011.

The state-backed oil massive attempted to steer the cost of a key benchmark for propane between October and November 2011 to learn its marketplace positions after it noticed important losses in its gas-liquids unit that 12 months, the CFTC stated.

The regulator stated the corporate attempted to prop up the cost of the Argus A long way East Index, which is used to worth propane within the Asia-Pacific area, when it turned into transparent the marketplace wasn’t transferring within the path investors had anticipated. The strikes have been supposed to learn Statoil’s positions held in swaps cleared in the course of the New York Mercantile Change.

Statoil did not in an instant reply to a request for remark.

The CFTC stated it came upon the tried manipulation via emails despatched by way of Statoil investors.

Lots of the global’s largest oil manufacturers additionally business important volumes of oil, herbal fuel and similar merchandise in each bodily and paper markets. That is triggered periodic proceedings that they have got an outsize affect on markets and costs, however policing the sphere has proved difficult.

In 2013, Ecu Fee officers raided the workplaces of Statoil and competitors Royal Dutch Shell PLC and BP PLC, in search of proof of manipulation of the oil-price benchmark going again so far as 2002. The probe closed in 2015 with out motion.

"Statoil has, because the inspection in Would possibly 2013, maintained that the corporate has no longer participated in any type of fee manipulation," the corporate stated then.

Write to Sarah Kent at [email protected]

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