Five oil speculators charged with price manipulation are currently keeping quiet about their deeds. On Tuesday, federal regulators from the Commodity Futures Trading Commission charged oil speculators, “Parnon Energy Inc. of California, Arcadia Petroleum of the United Kingdom, Swiss-based Arcadia Energy, James T. Dyer of Australia and Nicholas J. Wildgoose of California” of profiting to the tune of $50 million from their price manipulation tactics.
Apparently, there’s deception in all parts of the world and all parts of business. Should anyone really be shocked that oil speculators would make a quick and hefty buck off of their knowledge? Nope, people shouldn’t be shocked by anything anymore. When it comes to money, you should always expect the worse to come out in people.
The 2008 scheme went as follows: the five speculators went into Cushing, OK and bought up much of the crude oil available. A perceived shortage was caused because of their buy which caused oil futures contract prices to skyrocket.
The speculators then sold “short” contracts to investors by actually selling their own oil holdings causing the oil prices to fall and turning them into alleged rich greasy deceptive liars. The speculators worked their scheme each day and profited from the daily fluctuations in crude oil prices. However, being charged is just the first step in this investigation. All that money won’t be worth years in prison though, now will it?
Â© Evalynn J. Saeyang Â– Gather Inc. 2011