Reply #5: Regulators look into possible price manipulation in oil market [View All]

[DogPoundPup]

Source: USA Today

WASHINGTON (AP) — Federal regulators are six months into a wide-ranging investigation of U.S. oil markets, with a focus on possible price manipulation.

The Commodity Futures Trading Commission said Thursday it started the probe in December and is taking the unusual step of publicizing it "because of today's unprecedented market conditions."

Crude prices, which on Thursday hovered around $127 a barrel, have risen more than 42% since early December. Gasoline prices are nearing a national average of $4 a gallon, up from about $3.20 a year ago.

The commission said details of the investigation remain confidential, but announced a handful of other initiatives designed to increase transparency of U.S. and international energy futures markets.

For example, the CFTC said it will immediately require monthly reports from institutional investors who manage funds designed to mimic the price of crude oil and other energy futures. The goal, the agency said, is to identify the amount of such index trading and to "ensure that this type of trading activity is not adversely impacting the price discovery process."

Read more: http://www.usatoday.com/money/industries/energy/2008-05-29-oil-markets_N.htm