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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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kelsielee Champion Author Atlanta Posts:3,389 Points:672,025 Joined:Sep 2008	Message Posted: Nov 4, 2009 9:40:34 PM Ignore kelsielee Report Abuse 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.
DerHahn Champion Author Illinois Posts:11,161 Points:1,656,150 Joined:May 2004	Message Posted: Nov 4, 2009 8:26:27 PM Ignore DerHahn Report Abuse 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.
Naturenut99 All-Star Author Illinois Posts:966 Points:288,580 Joined:Sep 2009	Message Posted: Nov 4, 2009 2:55:59 PM Ignore Naturenut99 Report Abuse 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.
skybiker Champion Author South Carolina Posts:5,496 Points:1,135,165 Joined:Jul 2008	Message Posted: Nov 4, 2009 10:46:21 AM Ignore skybiker Report Abuse We hope this will work....
ruc2827 Veteran Author Illinois Posts:359 Points:566,435 Joined:May 2004	Message Posted: Nov 4, 2009 10:15:08 AM Ignore ruc2827 Report Abuse 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]
albert2008 Champion Author Winnipeg Posts:5,020 Points:1,022,135 Joined:Sep 2008	Message Posted: Nov 4, 2009 8:02:05 AM Ignore albert2008 Report Abuse you think this will stop them
Goatroper Champion Author Dallas Posts:4,694 Points:915,470 Joined:Apr 2004	Message Posted: Nov 4, 2009 8:00:59 AM Ignore Goatroper Report Abuse Well this is a step in the right direction.
jimraehl Champion Author Utah Posts:4,770 Points:1,178,460 Joined:Sep 2008	Message Posted: Nov 4, 2009 6:16:33 AM Ignore jimraehl Report Abuse We'll see if anything comes of this.
Fitwit Champion Author Stockton Posts:4,375 Points:945,525 Joined:May 2009	Message Posted: Nov 4, 2009 6:01:11 AM Ignore Fitwit Report Abuse 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.
ttwiw Champion Author Austin Posts:2,166 Points:1,301,160 Joined:Sep 2005	Message Posted: Nov 4, 2009 5:23:30 AM Ignore ttwiw Report Abuse Yeah, it's about time!
FASTR1 Champion Author Michigan Posts:5,432 Points:870,095 Joined:May 2007	Message Posted: Nov 4, 2009 3:48:16 AM Ignore FASTR1 Report Abuse This is good, if they can actually enforce it.
twobroke61 Champion Author Michigan Posts:6,061 Points:1,132,785 Joined:Sep 2008	Message Posted: Nov 4, 2009 3:42:57 AM Ignore twobroke61 Report Abuse 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
wegman Champion Author Twin Cities Posts:5,506 Points:1,630,560 Joined:Jun 2001	Message Posted: Nov 4, 2009 3:36:11 AM Ignore wegman Report Abuse 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.
findcheap Champion Author Los Angeles Posts:7,251 Points:1,545,920 Joined:Apr 2007	Message Posted: Nov 4, 2009 3:26:44 AM Ignore findcheap Report Abuse it won't work until it is tested by the manipulators
spiderjay Champion Author Little Rock Posts:3,314 Points:960,955 Joined:Oct 2005	Message Posted: Nov 4, 2009 3:16:09 AM Ignore spiderjay Report Abuse see this hitting my wallet hard soon
CrackedLCD Champion Author Alabama Posts:6,684 Points:1,295,350 Joined:May 2008	Message Posted: Nov 4, 2009 3:10:37 AM Ignore CrackedLCD Report Abuse 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.
ED6 Champion Author Riverside Posts:7,557 Points:1,472,545 Joined:Jul 2007	Message Posted: Nov 4, 2009 3:10:27 AM Ignore ED6 Report Abuse It's a good start.
cathevan Champion Author Manitoba Posts:2,177 Points:544,105 Joined:May 2007	Message Posted: Nov 4, 2009 3:08:43 AM Ignore cathevan Report Abuse we'll have to see how well they follow up on enforcing this
lpj Champion Author Macon Posts:8,583 Points:1,700,640 Joined:Apr 2006	Message Posted: Nov 4, 2009 2:56:37 AM Ignore lpj Report Abuse you will not have enough jail and fine takers to keep up with the crooks !!!!
BM4225 Champion Author Atlanta Posts:7,936 Points:1,670,485 Joined:Aug 2006	Message Posted: Nov 4, 2009 2:47:17 AM Ignore BM4225 Report Abuse What's to prevent them from opening an offshore company, can they go after those located in another country?
genef01 Champion Author Nashville Posts:2,611 Points:834,680 Joined:Jul 2008	Message Posted: Nov 4, 2009 2:46:01 AM Ignore genef01 Report Abuse This like closing the barn door after the horse has run away. Go after all of them, retailers included.
PetroScopper Champion Author Houston Posts:4,381 Points:1,094,600 Joined:Aug 2008	Message Posted: Nov 4, 2009 2:44:01 AM Ignore PetroScopper Report Abuse 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.
courier400 Champion Author Kansas Posts:11,959 Points:2,593,155 Joined:Mar 2004	Message Posted: Nov 4, 2009 2:38:01 AM Ignore courier400 Report Abuse Greedy lot
gass12 Champion Author Omaha Posts:6,187 Points:1,854,180 Joined:Oct 2005	Message Posted: Nov 4, 2009 2:35:40 AM Ignore gass12 Report Abuse We will see how this works out.
9C1 Champion Author Chicago Posts:20,420 Points:3,791,835 Joined:Jul 2001	Message Posted: Nov 4, 2009 2:31:09 AM Ignore 9C1 Report Abuse As others have said: now they have to enforce it, and figure out how to get the foreign traders to become honest also.
HailstormCA Champion Author San Diego Posts:5,871 Points:1,077,700 Joined:Nov 2008	Message Posted: Nov 4, 2009 2:22:28 AM Ignore HailstormCA Report Abuse Now, let's see if they enforce it.
101Speedster Champion Author Ventura Posts:25,608 Points:2,330,965 Joined:May 2005	Message Posted: Nov 4, 2009 2:19:50 AM Ignore 101Speedster Report Abuse Doesn't seem to be working so far.
rwm1 Champion Author Iowa Posts:2,243 Points:1,203,705 Joined:Oct 2007	Message Posted: Nov 4, 2009 1:00:25 AM Ignore rwm1 Report Abuse 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.
IamWhoIam Champion Author San Francisco Posts:13,960 Points:1,459,700 Joined:Jan 2007	Message Posted: Nov 4, 2009 12:59:06 AM Ignore IamWhoIam Report Abuse Sounds helpful.
joel27nc Champion Author Raleigh Posts:8,172 Points:1,395,370 Joined:Mar 2008	Message Posted: Nov 4, 2009 12:55:36 AM Ignore joel27nc Report Abuse WE'LL SEE WHAT HAPPENS NOW
ops3 Champion Author Cincinnati Posts:1,229 Points:737,025 Joined:Dec 2007	Message Posted: Nov 4, 2009 12:41:54 AM Ignore ops3 Report Abuse About time
Saturn93 Champion Author Salt Lake City Posts:6,582 Points:1,490,900 Joined:Oct 2006	Message Posted: Nov 4, 2009 12:37:15 AM Ignore Saturn93 Report Abuse Good luck enforcing the fines with foreign traders.
sjambok Champion Author Nashville Posts:7,983 Points:1,651,500 Joined:Apr 2006	Message Posted: Nov 4, 2009 12:35:53 AM Ignore sjambok Report Abuse 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.
Pstreicher All-Star Author Tampa Posts:812 Points:299,340 Joined:Oct 2007	Message Posted: Nov 4, 2009 12:35:47 AM Ignore Pstreicher Report Abuse How is this going to be monitored and with what resources?
RENEGADEGAS Champion Author Missouri Posts:12,080 Points:1,130,105 Joined:Jul 2008	Message Posted: Nov 4, 2009 12:32:22 AM Ignore RENEGADEGAS Report Abuse 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.
pbc2001 Champion Author Dallas Posts:2,316 Points:417,405 Joined:Feb 2009	Message Posted: Nov 4, 2009 12:26:51 AM Ignore pbc2001 Report Abuse We shall see how it all would work out.
jadeusa Champion Author Dallas Posts:6,910 Points:1,373,910 Joined:Sep 2005	Message Posted: Nov 4, 2009 12:25:37 AM Ignore jadeusa Report Abuse 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.
spike1zz Champion Author Indiana Posts:8,790 Points:1,158,170 Joined:Oct 2008	Message Posted: Nov 4, 2009 12:25:26 AM Ignore spike1zz Report Abuse 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.
Panama Red Champion Author San Diego Posts:8,752 Points:2,045,040 Joined:Jun 2004	Message Posted: Nov 4, 2009 12:21:39 AM Ignore Panama Red Report Abuse The more things change, the more they stay the same. Big talk; no action.
pinkelefant Champion Author Sacramento Posts:16,977 Points:2,198,890 Joined:Aug 2003	Message Posted: Nov 4, 2009 12:13:24 AM Ignore pinkelefant Report Abuse Oh, I hope this works.
250FORD Champion Author Minnesota Posts:8,265 Points:1,303,335 Joined:Feb 2007	Message Posted: Nov 4, 2009 12:11:51 AM Ignore 250FORD Report Abuse Why do I just see this ending up with payoffs to leave traders/manipulators alone?
greenfog Champion Author Illinois Posts:4,169 Points:1,179,215 Joined:Feb 2008	Message Posted: Nov 4, 2009 12:10:34 AM Ignore greenfog Report Abuse i can see the bribes and payoffs coming now. someone in the ftc is gonna get rich.
vulcan96 Champion Author Ohio Posts:21,186 Points:2,642,520 Joined:Aug 2004	Message Posted: Nov 4, 2009 12:04:05 AM Ignore vulcan96 Report Abuse plus, they said they will not go after the retailer manipulators !
bobdec Champion Author Florida Posts:6,731 Points:1,327,540 Joined:May 2008	Message Posted: Nov 4, 2009 12:03:08 AM Ignore bobdec Report Abuse About time! Now they need to enforce it
danny999 Champion Author Florida Posts:6,365 Points:1,175,085 Joined:Oct 2008	Message Posted: Nov 3, 2009 11:59:51 PM Ignore danny999 Report Abuse AS THEY SAY........."LOOKS GOOD ON PAPER". I'LL BELIEVE IT WHEN I SEE SEVERAL OF THESE GUYS BUSTED AND THROW THE KEY AWAY.
NHLiveFree Champion Author New Hampshire Posts:7,232 Points:1,173,310 Joined:Jun 2008	Message Posted: Nov 3, 2009 11:59:36 PM Ignore NHLiveFree Report Abuse 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."
NightDiver Champion Author Illinois Posts:2,260 Points:789,805 Joined:Mar 2007	Message Posted: Nov 3, 2009 11:59:01 PM Ignore NightDiver Report Abuse It won't stop them
Buddy2264 Champion Author Tampa Posts:9,273 Points:1,896,465 Joined:Oct 2005	Message Posted: Nov 3, 2009 11:45:27 PM Ignore Buddy2264 Report Abuse 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.
vulcan96 Champion Author Ohio Posts:21,186 Points:2,642,520 Joined:Aug 2004	Message Posted: Nov 3, 2009 11:44:42 PM Ignore vulcan96 Report Abuse yea, yea, yea , & we all believe in santa claus !!
PioneerUrban Champion Author West Virginia Posts:2,698 Points:532,505 Joined:Jun 2008	Message Posted: Nov 3, 2009 11:40:31 PM Ignore PioneerUrban Report Abuse Time will tell....