US gets tough on oil market fraud

The US Federal Trade Commission (FTC) issued final rules designed to prohibit oil market manipulation by imposing fines of as much as $ 1 mm per violation a day.
"This new rule will allow us to crack down on fraud and manipulation that can drive up prices at the pump," FTC head Jon Leibowitz said. "We will police the oil markets -- and if we find companies that are manipulating the markets, we will go after them."

The rules prohibit fraudulent or deceptive conduct that could harm wholesale petroleum markets, such as making false public announcements of planned pricing or output decisions, or false statistical or data reporting, the commission said.
So-called wash sales, which are intended to disguise the liquidity of a market or the price of a particular product, are also prohibited, the commission said.

The commission was given new powers to curb manipulation in legislation passed by Congress in 2007.
Lawmakers such as Senator Maria Cantwell increased pressure on the FTC last summer to issue the rules after oil hit a record $ 147.27 a barrel in July.