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he CFTC complaint alleges that the traders carried out the scheme in January and March 2008. By mid-January they had accumulated 4.6m barrels of physical oil, or two-thirds of oil available for delivery against the February WTI futures contract. In March they bought 6.3m barrels, equal to 84 per cent of oil available for delivery against the April contact. The regulator alleged that Parnon Energy, a US oil trader, together with its Swiss and UK affiliates Arcadia Energy (Suisse) and Arcadia Petroleum, made more than $50m from the scheme in January and March 2008 [...] The buying created the impression of a shortage and pushed up the price of WTI futures on the New York Mercantile Exchange. Ahead of their move in the physical market, the traders allegedly bought large amounts of futures and other financial instruments that would profit from a price rise. “They wanted to lull market participants into believing that supply would remain tight,” the CFTC said. “They knew that as long as the market believed that supply was tight and getting even tighter, there would be upward pressure on the prices of WTI for February delivery relative to March delivery, which was their goal.”
The rule limits traders to 25 percent of deliverable supply in the month nearest to delivery. The spot-month limits apply separately to physically settled and cash-settled contracts. Deliverable supply will be determined by the CFTC in conjunction with the exchanges.
Gasoline fell as U.S. demand for the motor fuel reached a 10-year low and supplies of the motor fuel rose to the highest level in 11 months.
Faced with sluggish sales at home, American refineries are shipping gasoline, diesel and other petroleum products abroad in record amounts, turning the country into a net exporter of fuel.
Gasoline prices have never been higher this time of the year.
Originally posted by Ixtab
See the point is, these traders did infact buy the Oil and Gas, its there, there free to do with it as they please.
Originally posted by CB6699
One can "prove" this, all one want. The fact remains, this is what the prices are, so they will tell you.
Take it or leave it.
It is you choice, and if anyone wants to do anything about it, use as little fuel as possible.
Americans hit the brakes on travel in 2011, as travel on U.S. roads fell to its lowest level since 2003, government data shows. Last year, U.S. drivers logged 35.7 billion fewer miles over 2010 — down 1.2 percent — to 2.963 trillion miles, the Federal Highway Administration reported.
WASHINGTON — When oil prices hit a record $147 a barrel in July 2008, the Bush administration leaned on Saudi Arabia to pump more crude in hopes that a flood of new crude would drive the price down. The Saudis complied, but not before warning that oil already was plentiful and that Wall Street speculation, not a shortage of oil, was driving up prices.