• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 38 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 4 hours Marine based energy generation
  • 13 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 11 mins China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 2 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 3 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 21 hours Trafigura CEO Weir says, "We will see 30% to 35% drop in demand". That amounts to 35mm bbls/day glut ! OPEC+ 10 mm cut won't fix it. It's a DEMAND problem.
  • 1 hour Which producers will shut in first?
  • 9 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 22 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 1 day The Most Annoying Person You Have Encountered During Lockdown
  • 1 day Cpt Lauren Dowsett

Breaking News:

This Emerging Economy Bets Big On Solar

Why A 15 Million Barrel Per Day Cut Will Never Happen

Why A 15 Million Barrel Per Day Cut Will Never Happen

Oil prices skyrocketed on Thursday…

The Inevitable Collapse Of Global Oil Production

The Inevitable Collapse Of Global Oil Production

Oil prices recovered slightly on…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

FERC Accuses Barclays of Manipulating US Energy Markets

FERC Accuses Barclays of Manipulating US Energy Markets

The U.S. Federal Energy Regulatory Commission (FERC) is using instant messaging banter between traders to build a case that proves that Barclays Plc (BARC.L) manipulated the US energy markets from 2006 to 2008, costing other market investors over $139.3 million.

The FERC claims that Scott Connelly, a veteran trader who joined Barclays in 2006 as head of its North American trading desk, recruited former colleagues Ryan Smith, Daniel Brin, and Karen Levine and then schemed with them to devise manners to illegally influence the markets.

Electronic chats between the traders are being used as part of the case; including messages such as, “I just started lifting the piss out of the Palo,” Ryan Smith boasted to his colleagues after he falsely raised the price on an energy hub near to Palo Verde in Arizona, claiming that his actions had “f***ed” the market.

Related article: US Bancorp Hits Renewable Energy Market Running

Craig Pirrong, the director of the Global Energy Management Institute at the University of Houston, explained that “traders are typically their own worst enemy. Sometimes they’re just shooting off their mouths.” In other words, sometimes the boasts are nothing more than macho bragging, and heavily over exaggerated from the factual truth. Barclays lawyers are certainly taking this tact, stating that the baseless case has been built on cherry picked messages which don’t even line up against the market data.

It would not be the first time that Barclays has illegally manipulated the markets. In July 2012 the CEO Bob Diamond stepped down and Barclays was fined $455 million after the bank was accused of rigging the London interbank offered rate (Libor).

If found guilty the FERC has the authority to impose fines of up to $1 million per violation per day.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage




Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News