US regulators sue Norwegian oil trading companies / News / The Foreigner

The Foreigner US regulators sue Norwegian oil trading companies. The Commodity Futures Trading Commission is litigating against two traders and two trading firms owned by Norwegian billionaire John Fredriksen for suspected oil price manipulation. Authorities at the CFTC allege the parties made $50 million from squeezing markets in 2008, implicating traders James Dyer of Oklahoma's Parnon Energy Inc, and Nick Wildgoose of Europe-based Arcadia Energy Ltd at the two Fredriksen-owned companies. They believe earned 280 million dollars It is believed both traders created the impression that tight supplies would boost oil prices, after they amassed large physical positions at a key US trading hub.

johnfrederiksen, jamesdyer, nickwildgoose, arcadiaenergy, parnonenergy, commodityfuturestradingcommissionlawsuit



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US regulators sue Norwegian oil trading companies

Published on Wednesday, 25th May, 2011 at 12:03 under the news category, by Michael Sandelson   .
Last Updated on 25th May 2011 at 12:29.

The Commodity Futures Trading Commission is litigating against two traders and two trading firms owned by Norwegian billionaire John Fredriksen for suspected oil price manipulation.



Authorities at the CFTC allege the parties made $50 million from squeezing markets in 2008, implicating traders James Dyer of Oklahoma's Parnon Energy Inc, and Nick Wildgoose of Europe-based Arcadia Energy Ltd at the two Fredriksen-owned companies. They believe earned 280 million dollars

It is believed both traders created the impression that tight supplies would boost oil prices, after they amassed large physical positions at a key US trading hub.

According to the civil suit, filed in New York, the oil price then crashed after the barrels were dumped back onto the market, with Messrs Dyer and Wildgoose earning profits from short positions they had accrued in futures markets.

"Defendants conducted a manipulative cycle, driving the price of WTI (crude) to artificial highs and then back down, to make unlawful profits,” it reads.

US oil market veterans remember both the accused from their high-flying trader days at BP Plc in the early 2000s when the company’s trading practices were scrutinised due to its large ownership of oil tanks in Cushing. The Oklahoma storage base is the delivery point for US oil futures.

BP was later fined a record 2.5 million dollar fine by the New York Mercantile Exchange (NYMEX) in 2003, following allegations of oil market manipulation. It has never admitted to any misconduct.

The CFTC has declined to comment about the civil suit against, case, but the authority’s Bart Chilton tells Reuters “It [50 million dollars] is an awful lot of money, and when we look at how consumers are suffering at the gas pump, we need to prosecute activity like this to the fullest extent of our authority under the law."

It claims Norwegian-Cypriot John Fredriksen’s two companies, wholly-owned subsidiaries of Cyprus-based Farahead Holdings Ltd, earned an estimated 280 million kroner from the alleged market manipulation, reports NRK.

Mr Frederiksen is the world’s 72nd-richest man, according to Forbes, with an estimated 60 billion kroner wealth.

Neither James Dyer and Nick Wildgoose, nor Arcadia Energy and Parnon Energy were available to answer questions.



Published on Wednesday, 25th May, 2011 at 12:03 under the news category, by Michael Sandelson   .
Last updated on 25th May 2011 at 12:29.

This post has the following tags: johnfrederiksen, jamesdyer, nickwildgoose, arcadiaenergy, parnonenergy, commodityfuturestradingcommissionlawsuit.





  
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