Oil market irregularities after policy announcements: US probe intensifies

 

 

US federal regulators have launched an investigation into large-scale transactions in the oil market that took place shortly after the US policy change related to the Iran war. The Commodity Futures Trading Commission (CFTC) is monitoring suspicious trades in 'oil futures' that took place just before Donald Trump's decisive policy announcements.

The current investigation is focusing on transactions that took place on March 23 and April 7 through CME Group and the Intercontinental Exchange. Reports say that the investigating agency has asked the exchanges to share information about the people behind these trades. The initial conclusion is that investors have reaped millions of dollars in profits by leaking highly confidential government information. The $950 million investment that took place hours before the US-Iran ceasefire announcement last week was a big topic in the market. Lawmakers and experts have warned that such pre-emptive transactions could undermine market transparency.

The CFTC Enforcement Division has said it will take strict measures to prevent manipulation and 'insider trading' in energy markets. Meanwhile, the White House has issued strict instructions to officials not to abuse their positions to interfere in the market.