Thursday, July 24, 2008

I'm feeling manipulated

The Commodity Futures Trading Commission (CFTC) Tuesday:

The ... preliminary analysis to date does not support the proposition that speculative activity has systematically driven changes in oil prices.
The CFTC today:

The U.S. Commodity Futures Trading Commission (CFTC) announced today its case against Optiver Holding BV, two of its subsidiaries, and three employees, charging them with manipulation and attempted manipulation of New York Mercantile Exchange (NYMEX) Light Sweet Crude Oil, New York Harbor Heating Oil, and New York Harbor Gasoline futures contracts during March 2007.

The complaint charges all defendants with 19 separate instances of attempted manipulation involving the aforementioned energy futures contracts on 11 days in March 2007. The complaint further alleges that in at least five of those 19 attempts, defendants successfully manipulated certain of these energy futures contracts, causing artificial prices.
So speculators can't manipulate prices, unless they do.