Replies to post #4655 on PEAK OIL - EPOCHAL EVENT OF OUR LIVES

[OptionMonster]

CFTC probing false oil inventory reports: report
Thursday September 4, 10:49 am ET

WASHINGTON (Reuters) - The U.S. futures market regulator is investigating whether companies are reporting false oil inventory levels to benefit their trading positions, The Wall Street Journal reported on Thursday.
The paper, quoting people familiar with the probe, said the Commodity Futures Trading Commission is taking testimony on periods when there have been big moves on the oil futures market, including July 2007.

The commission is concerned that companies may have tried to manipulate short-term pricing on oil markets through physical oil sales and purchases, the Journal reported.

According to the report, companies could also theoretically push prices higher by under-reporting oil inventory and then sell their oil at a premium.

The commission is also seeking data about what companies report to the Energy Information Administration, which reports oil inventories each week, the Journal reported.

The paper said this CFTC probe is a part of the larger investigation the commission launched last December into possible manipulation of the market.

The CFTC said it had no comment on The Wall Street Journal's story.

(Reporting by Ayesha Rascoe, editing by Matthew Lewis)