BP Facing Oil and Gas Probe

[Bronco_Beerslug]

More evidence of price fixing and gouging from big oil and gas?

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BP facing oil and gas probe
NEW YORK (Reuters) - Federal investigators are examining whether BP Plc (BP.L) manipulated crude oil and unleaded gasoline markets, according to a report in The Wall Street Journal on Tuesday that cited lawyers and traders close to the case.



The BP logo at a petrol station in London in a file photo. Federal investigators are examining whether BP manipulated crude oil and unleaded gasoline markets, according to a report in The Wall Street Journal on Tuesday that cited lawyers and traders close to the case. (Toby Melville/Reuters)


BP confirmed that the investigations were taking place, but declined further comment.

"We are aware of the investigations and we are complying with requests (on the investigation), as we always do," a BP spokesman in London said.

The Journal said the federal investigations signal a rise in regulatory scrutiny of the major oil company.

BP already faces allegations from the U.S. Commodity Futures Trading Commission that it manipulated the U.S. propane market in 2004.

U.S. Congress has also summoned the oil major next week over the shutdown of around half the output at its 400,000 barrels per day Prudhoe Bay oilfield in Alaska. Prudhoe is the largest oilfield in the United States.

The separate investigations on crude oil and gasoline could intensify pressure on BP because these markets are bigger and directly affect most American households, The Journal reported.

The crude oil probe was focused on possible manipulation of the global over-the-counter market in 2003 and 2004, The Journal reported. The CFTC has sent subpoenas to BP and energy traders.

The gasoline inquiry has been under way for more than a year and includes a criminal probe by the U.S. Justice Department, the newspaper said. It is examining a single day's trading on the New York Mercantile Exchange in 2002, The Journal said.

At 1509 GMT, BP shares were down 1.82 percent at 594.19 pence, valuing the company at just under 118 billion pounds ($223.9 billion).

In London, the Financial Services Authority declined to comment on whether it was involved in the investigation. The FSA is the UK equivalent of the CFTC.

(Additional reporting by Mark Potter and Simon Webb in London)
http://tinyurl.com/z7maz

[L.A. BRONCOS FAN]

More evidence of price fixing and gouging from big oil and gas?

Wouldn't be the first time such evidence has emerged, would it?

I hope this investigation is more than just a dog and pony show for the voters and these schmucks get nailed this time.