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Rogue Trades Blamed for Year-High Oil Spike

Fox News -- PVM Oil Futures, a London-based division of the world’s biggest broker of over-the-counter derivatives, has lost almost $10 million after falling victim to a rogue trader.

The unauthorized trades in the early hours of Tuesday morning are reported to have been brokered by Steve Perkins, a senior, long-standing trader in futures on the Brent oil contract
The rogue trades are widely believed to have caused global crude oil prices to spike to their highest level in more than eight months — a leap that traders and analysts had struggled to explain.

Oil breached $73 a barrel during Asian trade on Tuesday, up by more than $1.50 a barrel in under half an hour at around 2 a.m.

More than 16 million barrels of Brent crude oil traded in just over half an hour, according to Reuters exchange..

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Submitted Jul 03, 2009 By: baddog58

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TBRR Champion Author Jacksonville Posts:1,318 Points:232,770 Joined:Dec 2007	Message Posted: Jul 3, 2009 10:10:15 PM Ignore TBRR Report Abuse looks like Fox News let the cat out of the bag. i am sure ABC, NBC, CNN probably new about it but kept it quiet as they usually do on items of this nature. just a little greed on the brokers part as they only have to put down 8% to cover the purchase.
DrivingFool2 Champion Author Wisconsin Posts:3,461 Points:643,790 Joined:Apr 2005	Message Posted: Jul 3, 2009 10:10:13 PM Ignore DrivingFool2 Report Abuse Speculators, hang em all
cincidap Champion Author Cincinnati Posts:3,065 Points:599,325 Joined:Sep 2006	Message Posted: Jul 3, 2009 10:06:21 PM Ignore cincidap Report Abuse Let him rot next to Madoff.
tweety258 Champion Author Grand Rapids Posts:1,406 Points:650,040 Joined:Apr 2008	Message Posted: Jul 3, 2009 9:59:07 PM Ignore tweety258 Report Abuse Is anybody really surprised about greedy speculators? The only thing that surprises me is that somebody is actually publishing it.
Jeff4U Champion Author Atlanta Posts:3,262 Points:877,195 Joined:Nov 2004	Message Posted: Jul 3, 2009 9:54:29 PM Ignore Jeff4U Report Abuse Ha, ha, ha!!! It's about time speculator(s) took the fall instead of us, the consumer. Perhaps if more high risk cases become more common, speculators might reconsider artificially inflating and controlling the cost of crude oil.
bigmacatac Champion Author St. Louis Posts:3,000 Points:629,075 Joined:Oct 2008	Message Posted: Jul 3, 2009 9:51:51 PM Ignore bigmacatac Report Abuse BIG OIL + CRONIES = GREED
PokerAce Champion Author Baton Rouge Posts:4,852 Points:941,055 Joined:Jan 2008	Message Posted: Jul 3, 2009 9:38:05 PM Ignore PokerAce Report Abuse specu-traitors hard at work .... they need to be drawn and quartered ....
CoffeeTrader Champion Author Victoria Posts:2,412 Points:443,680 Joined:Sep 2008	Message Posted: Jul 3, 2009 9:29:43 PM Ignore CoffeeTrader Report Abuse Surprising that nothing is in place to prevent this. They obviously handle alot of trades to be able to let this go unnoticed until it was done.
salog Champion Author Columbia Posts:3,515 Points:876,005 Joined:Oct 2006	Message Posted: Jul 3, 2009 9:27:57 PM Ignore salog Report Abuse too bad they didn't lose more, might have led to some changes.
pkhdonovan Champion Author Maine Posts:7,017 Points:1,723,470 Joined:Sep 2005	Message Posted: Jul 3, 2009 9:24:50 PM Ignore pkhdonovan Report Abuse Always knew it was rigged.
RovingOkie67 Champion Author Arizona Posts:1,581 Points:415,730 Joined:Jul 2007	Message Posted: Jul 3, 2009 9:24:45 PM Ignore RovingOkie67 Report Abuse And we suppose to shed tears for them, not on my life!
finch2dancandy Rookie Author Georgia Posts:71 Points:10,760 Joined:Jul 2009	Message Posted: Jul 3, 2009 9:18:19 PM Ignore finch2dancandy Report Abuse This does look deliberate there is just no way that it was a simple mistake. It had to be more people behind this.
gibber73 Sophomore Author Columbus Posts:165 Points:208,150 Joined:Oct 2008	Message Posted: Jul 3, 2009 9:13:23 PM Ignore gibber73 Report Abuse Doesn't surprise me.
PetroScopper Champion Author Houston Posts:2,193 Points:598,525 Joined:Aug 2008	Message Posted: Jul 3, 2009 9:11:08 PM Ignore PetroScopper Report Abuse That's news that is pretty obvious - if it wasn't this company it would be another one... there's never a price to pay for cheating in this industry, therefore things will never change.
Bonanza Champion Author Boston Posts:6,211 Points:1,571,665 Joined:Jun 2004	Message Posted: Jul 3, 2009 9:04:55 PM Ignore Bonanza Report Abuse Sound like someone is making big bucks
SSchmidty Champion Author Illinois Posts:4,311 Points:815,365 Joined:Mar 2008	Message Posted: Jul 3, 2009 9:04:39 PM Ignore SSchmidty Report Abuse Gee, lets collect the details ... pig-oil and pig friends making uncommonly high $$$
dick57 Veteran Author Winnipeg Posts:256 Points:95,945 Joined:Sep 2008	Message Posted: Jul 3, 2009 9:02:08 PM Ignore dick57 Report Abuse And this comes as a surprise. Investors have been screwing around with prices for ages.
NavyEOD Champion Author Los Angeles Posts:5,134 Points:1,057,565 Joined:Jul 2007	Message Posted: Jul 3, 2009 8:51:23 PM Ignore NavyEOD Report Abuse There barely finding this out.
RayJayT Champion Author Mississippi Posts:2,851 Points:616,080 Joined:Aug 2008	Message Posted: Jul 3, 2009 8:49:09 PM Ignore RayJayT Report Abuse How they lost their bank...
PissedCanuck Champion Author Toronto Posts:3,818 Points:816,630 Joined:Nov 2006	Message Posted: Jul 3, 2009 8:46:55 PM Ignore PissedCanuck Report Abuse Too bad, so sad.
EZExit Champion Author Phoenix Posts:3,835 Points:726,510 Joined:Aug 2008	Message Posted: Jul 3, 2009 8:44:01 PM Ignore EZExit Report Abuse When a broker get's burned by a specualtor's irrational action, it's a big deal. But when the consumer get's burned by speculator's actions, it is "supply and demand". I get it now...
camel1 Champion Author Minnesota Posts:3,775 Points:1,325,550 Joined:Jul 2006	Message Posted: Jul 3, 2009 8:43:57 PM Ignore camel1 Report Abuse Speculating should be prohibited
e3p0 Champion Author Columbus Posts:2,179 Points:583,090 Joined:Mar 2006	Message Posted: Jul 3, 2009 8:42:42 PM Ignore e3p0 Report Abuse There is always a reason/excuse. Now, ask me how much I care.
polpal Sophomore Author Spokane Posts:241 Points:2,120,725 Joined:May 2003	Message Posted: Jul 3, 2009 8:23:55 PM Ignore polpal Report Abuse Speculating should be outlawed in all markets all over the world. If they want to speculate Las Vegas is always opened.
hwnguy Champion Author Honolulu Posts:2,977 Points:643,225 Joined:Apr 2008	Message Posted: Jul 3, 2009 8:12:51 PM Ignore hwnguy Report Abuse didn't last for long
Muke Champion Author Virginia Beach Posts:2,778 Points:704,235 Joined:Jun 2007	Message Posted: Jul 3, 2009 8:10:53 PM Ignore Muke Report Abuse Traders do not see a drop of crude oil, never work on oil rig, refinery or oil tankers and they predict oil prices seating on computer. Reality will kill them in trading when prices drop and reverse in other direction.
netman044 Champion Author Texas Posts:3,844 Points:646,060 Joined:Sep 2005	Message Posted: Jul 3, 2009 8:06:36 PM Ignore netman044 Report Abuse Make the rogue trader pay back the money that his company lost, fire him, then remove the companies license to trade as a penalty for not having better internal controls. As long as there is no penalty, this kind of thing will continue to happen.
Hazelnut Champion Author Greensboro Posts:1,880 Points:754,110 Joined:Sep 2003	Message Posted: Jul 3, 2009 8:04:26 PM Ignore Hazelnut Report Abuse In other words ... "Taipan" comes to mind.
Valricoslash Champion Author Tampa Posts:1,763 Points:391,320 Joined:Nov 2008	Message Posted: Jul 3, 2009 8:02:15 PM Ignore Valricoslash Report Abuse A rogue trader? Wbhat are they going to do about it? Absolutely nothing becasue they all made some quick cash before thr markets fell back down/
Roe2009 Rookie Author Missouri Posts:34 Points:2,710 Joined:Jun 2009	Message Posted: Jul 3, 2009 7:58:54 PM Ignore Roe2009 Report Abuse WE all need to use less gas
Jojavo All-Star Author London Posts:593 Points:121,465 Joined:Apr 2009	Message Posted: Jul 3, 2009 7:56:30 PM Ignore Jojavo Report Abuse Its all about "GREED".... When will this ever stop...
BornToulouse Veteran Author Georgia Posts:411 Points:71,315 Joined:Jul 2009	Message Posted: Jul 3, 2009 7:54:15 PM Ignore BornToulouse Report Abuse I'm all for old-fashioned medeival punishment for rogue commodities traders who cause such market disruptions and take money from all our pockets. Some sort of harsh penalty is in order...if only to discourage such behavior. Just my thoughts on the matter...
pliskin Champion Author Syracuse Posts:3,190 Points:974,425 Joined:Apr 2005	Message Posted: Jul 3, 2009 7:53:53 PM Ignore pliskin Report Abuse Every "expert" has a different opinion on who or what is causing the oil spikes from the speculators to OPEC itself. I think it's simply a combination of all of them.
Bubba44612 Champion Author Ohio Posts:2,646 Points:912,975 Joined:Aug 2005	Message Posted: Jul 3, 2009 7:51:12 PM Ignore Bubba44612 Report Abuse I say ban speculators cause look at the problems they caused the world last year and good that they lost millions on this little farce.
MissRita Champion Author Austin Posts:1,040 Points:423,790 Joined:Feb 2008	Message Posted: Jul 3, 2009 7:47:34 PM Ignore MissRita Report Abuse Needs to come back down.
bbreff Champion Author Atlanta Posts:5,154 Points:1,635,120 Joined:Jun 2005	Message Posted: Jul 3, 2009 7:46:43 PM Ignore bbreff Report Abuse Sound like someone is making big bucks -- not me.
twomikea Champion Author Fort Worth Posts:2,707 Points:588,260 Joined:Nov 2008	Message Posted: Jul 3, 2009 7:42:43 PM Ignore twomikea Report Abuse they work hard to control the prices to their advantage
dollarwatcher Champion Author Wisconsin Posts:2,982 Points:558,775 Joined:Mar 2007	Message Posted: Jul 3, 2009 7:36:21 PM Ignore dollarwatcher Report Abuse Speculators are the scam of the crude oil business.
BurntOrange Champion Author Austin Posts:2,519 Points:613,840 Joined:Nov 2007	Message Posted: Jul 3, 2009 7:31:00 PM Ignore BurntOrange Report Abuse This story was posted once today. For all of you who want to end speculation, read the article. These trades took place in the United Kingdom, on the London exchange. Obama is only president of the US, not the world.
MidnightSun Champion Author New Hampshire Posts:15,000 Points:594,295 Joined:Nov 2007	Message Posted: Jul 3, 2009 7:24:54 PM Ignore MidnightSun Report Abuse In the tourist & resort mtn towns of northern NH gas prices are slowly dropping the 4th of July w/e to reg $2.57-$2.63 and diesel $2.52-2.59. Not too bad at all!
SeerLV Champion Author Las Vegas Posts:3,473 Points:712,710 Joined:Jun 2008	Message Posted: Jul 3, 2009 7:23:27 PM Ignore SeerLV Report Abuse Is this the truth or is he a scapegoat?
winggnutt Champion Author Detroit Posts:6,332 Points:1,426,900 Joined:Aug 2005	Message Posted: Jul 3, 2009 7:21:53 PM Ignore winggnutt Report Abuse OUTLAW SPECULATORS NOW!!!!!!
Pozole Champion Author Portland Posts:3,169 Points:615,730 Joined:Mar 2005	Message Posted: Jul 3, 2009 7:20:47 PM Ignore Pozole Report Abuse ...don't forget to spay or neuter your local rogue trader [speculator] population...
dhnbBUG Champion Author Pennsylvania Posts:2,621 Points:730,455 Joined:Apr 2008	Message Posted: Jul 3, 2009 7:07:03 PM Ignore dhnbBUG Report Abuse Speculators again.
polpal Sophomore Author Spokane Posts:241 Points:2,120,725 Joined:May 2003	Message Posted: Jul 3, 2009 6:58:13 PM Ignore polpal Report Abuse Rogue = Speculators and why is it so hard to cut them off?
Dancin Champion Author Toronto Posts:4,215 Points:1,781,450 Joined:Mar 2004	Message Posted: Jul 3, 2009 6:58:10 PM Ignore Dancin Report Abuse Let us punish the traders, their supervisors, their managers, and their vice presidents for making the trades, not checking what their traders are doing, not verifying that supervision is effective and even taking place, and not evaluating the performance of managers that should be ensuring rogue trades are not being made. Punish em all. Bernie needs company.
DellDude2 Champion Author Nashville Posts:3,974 Points:1,147,710 Joined:Aug 2005	Message Posted: Jul 3, 2009 6:57:51 PM Ignore DellDude2 Report Abuse Oil may be higher, but pump prices are sinking. Counterintuitive before a holiday-weekend.