Thursday, August 14, 2008

US FTC new ruling on market manipulation

The U.S. Federal Trade Commission proposed new ruling that would levy heavy fines for anyone manipulating the petroleum markets to deter ``fraudulent or deceptive conduct,'' including false reporting or misleading announcements by refineries, pipelines or investment banks. Violators could face civil penalties of up to $1 million per violation per day.

It is comforting to understand that the Federal Trade Commission is committed to exercising its authority to determine whether crude oil, gasoline or petroleum distillates price increases at wholesale are a result of illegal market manipulation.

In today's out-of-control petroleum markets can't be explained by normal market fundamentals; with the new ruling with aggressive action by the Federal Trade Commission can resolve the energy price bubble seen recently.

Oil industry analysts have questioned whether traders have the power to raise prices and argue that speculation is a symptom, not a cause, of high oil prices, which are set on the world market.

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