The FTC’s investigation is still in a preliminary stage according to a report at Bloomberg News that cites people familiar with the matter. The agency has reportedly agreed with the Department of Justice to handle the investigation. An FTC spokesman would not comment on the story.
At issue is the manner in which oil prices are reported to Platts and the way Platts then calculates the spot price of crude. The process is very similar to the way that Libor rates were generated: oil traders report price data on physical transactions to Platts from which the pricing energy whips up a spot price. As with Libor rate setting, reporting is voluntary and it is easy for traders to hide the actual prices paid for crude. Platts could reject a price that it believes is false.
Just last week The Wall Street Journal reported on price-manipulation shenanigans in the oil market.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
