Monday, 16 July 2012

94% of us ...

...believe there should be an investigation ...

It's not a small majority, it's overwhelming, and the topic is ......... oil.

The problem seems to be another distortion of facts to manipulate the market price for oil, and who is in the frame :
  • ... banks
  • ... hedge funds
  • ... energy companies
I expect the political left wing to assign blame to Capitalism, but like the Libor scandal it is a failure of morality and ethics of individuals.  In fact this particular markets is unregulated, it relies on the most basic of traits we expect of those in positions of responsibility, "honesty".
This is one of the major concerns raised in the G20 report, published last month by the International Organisation of Securities Commissions (IOSCO).
In the study for global finance ministers, including George Osborne, the regulator warns that traders have opportunities to influence oil prices for their own profit.
It points out that the whole market is “voluntary”, meaning banks and energy companies can choose which trades to make public.
IOSCO says this “creates opportunity for a trader to submit a partial picture in order to influence the [price] to the trader’s advantage”.
In an earlier report, the regulator concluded: “It is open to companies to report only those deals that are in their own best interests for the rest of the market to see.”
The price reporting agencies, Platts and Argus, argue they employ journalists to weed out false data submitted by oil traders
Could this be a reason why we are paying such high prices for fuel at the pumps ......

In fact this is another example of a need for a regulatory body that is divorced from the industry under scrutiny.  The public needs protection.

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