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GasBuddy News Article

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U.S. oil market anti-manipulation rule takes effect

Reuters -- A U.S. Federal Trade Commission rule takes effect on Wednesday that will hit energy traders and companies with fines of up to $1 million a day if they manipulate the oil markets.

The FTC unveiled the rule back in August to go after fraud in oil markets that it said could cause widespread damage to the U.S. economy. The old fine was just $11,000.

"This new rule will allow us to crack down on fraud and manipulation that can drive up prices at the pump," FTC Chairman Jon Leibowitz said at the time. "We will police the oil markets -- and if we find companies that are manipulating the markets, we will go after them."

The rule prohibits fraud or deceit both in the cash, or physical, energy markets and on the regulated futures exchanges.


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Submitted Nov 03, 2009 By: ziyulu
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Author Topic: U.S. oil market anti-manipulation rule takes effect Post a Reply Back to Topics
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kelsielee Car icon
Champion Author Atlanta

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Message Posted: Nov 4, 2009 10:40:34 PM

This won't really help stop many of the activities of speculators since much of what they do is not outright fraud or deceipt. They will still cause many of the oil price upswings that we have seen in recent years.
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DerHahn Car icon
Champion Author Illinois

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Message Posted: Nov 4, 2009 9:26:27 PM

this has been promised for some time now. let's see if it actually happens. if they do, the speculators will simply do their business on overseas markets.
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Naturenut99 Car icon
Rookie Author Illinois

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Message Posted: Nov 4, 2009 3:55:59 PM

About time...
Hope the one million dollars a day is enough teeth.
As far as I'm concerned there shouldnt be "speculators" for oil anyway.
That title for that commodity was ripe for the spoiling.
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skybiker Car icon
Champion Author South Carolina

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Message Posted: Nov 4, 2009 11:46:21 AM

We hope this will work....
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Veteran Author Illinois

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Message Posted: Nov 4, 2009 11:15:08 AM

The FTC acknowledges people are manipulating the market. http://www.stopoilspeculationnow.com for what more can be done.

[Edited by: ruc2827 at 11/4/2009 11:15:23 AM EST]
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albert2008 Car icon
All-Star Author Winnipeg

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Message Posted: Nov 4, 2009 9:02:05 AM

you think this will stop them
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All-Star Author Dallas

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Message Posted: Nov 4, 2009 9:00:59 AM

Well this is a step in the right direction.
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All-Star Author Utah

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Message Posted: Nov 4, 2009 7:16:33 AM

We'll see if anything comes of this.
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fitwit Car icon
All-Star Author Stockton

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Message Posted: Nov 4, 2009 7:01:11 AM

Is this prohibiting fraud or profit? (I am just asking a question, because I really don't know in this case) With our current move toward Socialism, don't be too embracing of government controls.
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All-Star Author Austin

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Message Posted: Nov 4, 2009 6:23:30 AM

Yeah, it's about time!
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Champion Author Michigan

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Message Posted: Nov 4, 2009 4:48:16 AM

This is good, if they can actually enforce it.
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twobroke61 Car icon
Champion Author Michigan

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Message Posted: Nov 4, 2009 4:42:57 AM

we will see if they carry through on this one it has been going on for so long that i doubt they do fine anyone at all they will just pocket the money and sweep the dirt under the rug as usual
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Champion Author Twin Cities

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Message Posted: Nov 4, 2009 4:36:11 AM

For some reason I think the rules themselves will be subject to manipulation - if the current regime doesn't like you, lots of investigators.

If the Obama administration acts as ham handedly as I think they will, all this will do is push the trades off shore.
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Champion Author Los Angeles

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Message Posted: Nov 4, 2009 4:26:44 AM

it won't work until it is tested by the manipulators
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Champion Author Little Rock

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Message Posted: Nov 4, 2009 4:16:09 AM

see this hitting my wallet hard soon
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Champion Author Mississippi

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Message Posted: Nov 4, 2009 4:10:37 AM

Yeah good luck with that.

It's like the anti-gouging laws in many hurricane-prone states. Nothing much ever comes from it because it's almost impossible to enforce.
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Champion Author Riverside

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Message Posted: Nov 4, 2009 4:10:27 AM

It's a good start.
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Champion Author Manitoba

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Message Posted: Nov 4, 2009 4:08:43 AM

we'll have to see how well they follow up on enforcing this
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Champion Author Macon

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Message Posted: Nov 4, 2009 3:56:37 AM

you will not have enough jail and fine takers to keep up with the crooks !!!!
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Champion Author Atlanta

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Message Posted: Nov 4, 2009 3:47:17 AM

What's to prevent them from opening an offshore company, can they go after those located in another country?
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All-Star Author Nashville

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Message Posted: Nov 4, 2009 3:46:01 AM

This like closing the barn door after the horse has run away.
Go after all of them, retailers included.
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Champion Author Houston

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Message Posted: Nov 4, 2009 3:44:01 AM

This will probably take some time to actually have any affect but it's good to see that they're at least trying to do something... every little bit helps us get closer to being protected, as a consumer.
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Champion Author Kansas

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Message Posted: Nov 4, 2009 3:38:01 AM

Greedy lot
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Champion Author Omaha

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Message Posted: Nov 4, 2009 3:35:40 AM

We will see how this works out.
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Champion Author Chicago

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Message Posted: Nov 4, 2009 3:31:09 AM

As others have said: now they have to enforce it, and figure out how to get the foreign traders to become honest also.
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Champion Author San Diego

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Message Posted: Nov 4, 2009 3:22:28 AM

Now, let's see if they enforce it.
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Champion Author Ventura

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Message Posted: Nov 4, 2009 3:19:50 AM

Doesn't seem to be working so far.
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Champion Author Iowa

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Message Posted: Nov 4, 2009 2:00:25 AM

Its good they recognize there was manipulation. Now if they enforce it. And those deep pockets don't find their ways to lobbyists. Also what about global prices? How do they keep that from being manipulated and we know it is.
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Champion Author San Francisco

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Message Posted: Nov 4, 2009 1:59:06 AM

Sounds helpful.
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Champion Author Raleigh

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Message Posted: Nov 4, 2009 1:55:36 AM

WE'LL SEE WHAT HAPPENS NOW
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Sophomore Author Cincinnati

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Message Posted: Nov 4, 2009 1:41:54 AM

About time
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Champion Author Salt Lake City

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Message Posted: Nov 4, 2009 1:37:15 AM

Good luck enforcing the fines with foreign traders.
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Champion Author Nashville

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Message Posted: Nov 4, 2009 1:35:53 AM

how can one prove that the oil markets are being manipulated? That's going to take all the attention of the watchdog committee, and while they're paying attention to making sure the market isn't being manipulated, you've got Bernie Madoff and his ilk, fleecing investors with their various ponzi schemes.
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All-Star Author Tampa

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Message Posted: Nov 4, 2009 1:35:47 AM

How is this going to be monitored and with what resources?
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Champion Author Missouri

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Message Posted: Nov 4, 2009 1:32:22 AM

Does this go for hussien too? He is still insisting that he wants gas to level off between $3.50 and $4.00 a gallon despite the price of oil. He said this would encourage people to buy more fuel efficient vehicles. In other words, if you dont do what he wants on your own, he will drive prices up until you have no choice. Thats change for you. Never in my life time did I not have choices in America.
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Champion Author Dallas

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Message Posted: Nov 4, 2009 1:26:51 AM

We shall see how it all would work out.
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Champion Author Dallas

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Message Posted: Nov 4, 2009 1:25:37 AM

Sounds good, but probably won't work. There needs to be limits of trading within a time period just like the SEC put into slow down computer trading.
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Champion Author Indiana

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Message Posted: Nov 4, 2009 1:25:26 AM

Put a rule in to send gougers to jail. Oh, thats right they do, they just don't do it. Our government working hard for the working class.
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Champion Author San Diego

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Message Posted: Nov 4, 2009 1:21:39 AM

The more things change, the more they stay the same. Big talk; no action.
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Champion Author Los Angeles

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Message Posted: Nov 4, 2009 1:13:24 AM

Oh, I hope this works.
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Champion Author Minnesota

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Message Posted: Nov 4, 2009 1:11:51 AM

Why do I just see this ending up with payoffs to leave traders/manipulators alone?
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Veteran Author Illinois

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Message Posted: Nov 4, 2009 1:10:34 AM

i can see the bribes and payoffs coming now. someone in the ftc is gonna get rich.
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Champion Author Ohio

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Message Posted: Nov 4, 2009 1:04:05 AM

plus, they said they will not go after the retailer manipulators !
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Champion Author Florida

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Message Posted: Nov 4, 2009 1:03:08 AM

About time! Now they need to enforce it
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Champion Author Florida

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Message Posted: Nov 4, 2009 12:59:51 AM

AS THEY SAY........."LOOKS GOOD ON PAPER". I'LL BELIEVE IT WHEN I SEE SEVERAL OF THESE GUYS BUSTED AND THROW THE KEY AWAY.
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Champion Author New Hampshire

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Message Posted: Nov 4, 2009 12:59:36 AM


This FTC regulation in the CFR is just one small aspect of the tighter overall regulations to prohibit and fine illegal price manipulation. It is more important that members in this forum read the entire article before ranting and venting with half truths. Here is an important detail of the article that many ignored or conveniently overlooked before ranting:

"In addition to looking for fraudulent activity in the cash market, the FTC says it will coordinate with the Commodity Futures Trading Commission on manipulation in the regulated futures markets.
However, the FTC would not rule out acting alone in charging traders in the futures markets with manipulation if the CFTC decided not to pursue possible wrongdoing."
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Champion Author Illinois

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Message Posted: Nov 4, 2009 12:59:01 AM

It won't stop them
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Champion Author Tampa

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Message Posted: Nov 4, 2009 12:45:27 AM

It is about time they did something. It is also time to take away the tax breaks and make them pay, they are not using the breaks as they were intended. Conservation keeps your money in your pocket.
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Champion Author Ohio

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Message Posted: Nov 4, 2009 12:44:42 AM

yea, yea, yea , & we all believe in santa claus !!
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Champion Author West Virginia

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Message Posted: Nov 4, 2009 12:40:31 AM

Time will tell....
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