A PYMNTS Company

US: CFTC in talks to settle crude oil manipulation case

By  |  April 15, 2014

The Commodity Futures Trading Commission is reportedly in discussions with Arcadia Petroleum and Parnon Energy to potentially settle a dispute over allegations of crude oil price-fixing.

The CFTC first sued the companies, along with traders James Dyer of Parnon and Nick Wildgoose of Arcadia, on claims the firms made $50 million to falsely manipulate the market. Specifically, the individuals are accused of buying up oil to create an impression of low supply to boost oil prices.

Later, the CFTC says, the traders dumped the oil back into the market, saw prices drop, and reaped profits from the futures markets.

Both traders previously worked at BP Plc.

While the parties were headed to trial, the CFTC and representatives for the defendants issued a letter to the judge requesting a rescheduled trial, as they are now in mediation talks.

A related case is seeking class action status to sue companies for futures manipulation, but is also reported to be in mediation talks.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.