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Questions grow over oil spike brokerage

FT.Com -- The boss of Steve Perkins, the broker at the heart of a rogue trading scandal that rocked oil markets this week, issued a bullish report suggesting prices could go higher only hours after Mr Perkins made the unauthorised trades that caused prices to spike.
The disclosure raises further questions about internal controls at PVM Oil Associates, the world’s largest oil brokerage. The London-based firm, which revealed on Thursday it had lost $10m (€7.1m, £6.1m) as a result of trades by Mr Perkins, one of its senior brokers, said the trading report was sent to clients at 08.44 in London on Tuesday, and it did not discover the rogue trading until 10.10 that morning.

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Submitted Jul 04, 2009 By: clement007

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NorthglennBill Champion Author Denver Posts:1,799 Points:342,030 Joined:Oct 2008	Message Posted: Jul 5, 2009 10:15:02 AM Ignore NorthglennBill Report Abuse I don't get the importance of this story. All the traders are over bidding on the price of oil, this one just got caught. The others will soon follow as the price of crude drops.
fightbigoil71 Champion Author Milwaukee Posts:1,451 Points:321,580 Joined:Nov 2008	Message Posted: Jul 5, 2009 10:09:33 AM Ignore fightbigoil71 Report Abuse Enough of this story.
disldo Sophomore Author Chicago Posts:109 Points:38,610 Joined:Feb 2007	Message Posted: Jul 5, 2009 10:05:53 AM Ignore disldo Report Abuse Without the oil brokers, it would just be someone else screwing us on oil. Consider a bushel of wheat = a barrel of oil. Trade balance!
demnuts Champion Author Orlando Posts:7,492 Points:1,179,440 Joined:Aug 2003	Message Posted: Jul 5, 2009 10:02:57 AM Ignore demnuts Report Abuse I wish they would not post an article that requires signing up to read!!
hangupanddrive Champion Author Michigan Posts:1,369 Points:1,054,555 Joined:Aug 2005	Message Posted: Jul 5, 2009 10:00:49 AM Ignore hangupanddrive Report Abuse Beating the same issue to death.
bbreff Champion Author Atlanta Posts:3,799 Points:1,366,735 Joined:Jun 2005	Message Posted: Jul 5, 2009 9:57:36 AM Ignore bbreff Report Abuse Sound like someone is making a lot of money at the expense of the masses.
tazdriver Champion Author Huntsville Posts:4,120 Points:929,430 Joined:Jan 2007	Message Posted: Jul 5, 2009 9:57:12 AM Ignore tazdriver Report Abuse Why is Mr Perkins not in Jail, he is a criminal! For those who do not seem to understand, when you do something illegal it is a crime. When people commit crimes they are criminals. All of this rouge illegal training on the oil futures market is stalling the economic recovery, so that one individual can get richer from our suffering.
CzechSteve Champion Author Orange County Posts:1,700 Points:421,615 Joined:Jul 2008	Message Posted: Jul 5, 2009 9:56:57 AM Ignore CzechSteve Report Abuse whats the point here?
djgunrunner Champion Author Salt Lake City Posts:3,361 Points:1,099,275 Joined:Apr 2005	Message Posted: Jul 5, 2009 9:56:31 AM Ignore djgunrunner Report Abuse It would be nice to see this price fixer doing his thing from a jail cell.
FuelRacer1132 All-Star Author Iowa Posts:645 Points:144,470 Joined:May 2007	Message Posted: Jul 5, 2009 9:52:57 AM Ignore FuelRacer1132 Report Abuse Publish new news, this is just rehash of old news.
bluebird1 Champion Author Toronto Posts:9,235 Points:1,859,035 Joined:May 2004	Message Posted: Jul 5, 2009 9:51:55 AM Ignore bluebird1 Report Abuse We all knew speculation was rogue...didn't we???
montana920 Champion Author Chicago Posts:2,042 Points:397,450 Joined:Oct 2008	Message Posted: Jul 5, 2009 9:50:07 AM Ignore montana920 Report Abuse Once again demonstrating that SPECULATION whether rogue or not can and does drive the price. So GREED as demonstrated by Bernie Madoff is still alive a thrives on those willing to RISK it all to make a quick albeit ILLEGAL quick buck......
donny47 Sophomore Author New Hampshire Posts:174 Points:152,575 Joined:Feb 2009	Message Posted: Jul 5, 2009 9:48:38 AM Ignore donny47 Report Abuse speculating should be illegal!
biza4u Champion Author New Haven Posts:2,163 Points:371,530 Joined:Jan 2007	Message Posted: Jul 5, 2009 9:45:29 AM Ignore biza4u Report Abuse Nothing changed. Its all about greed and speculation. It unfortunate that a small percentage of the population can cause such harm to the whole
Tundralimited2009 All-Star Author Dallas Posts:798 Points:232,955 Joined:Feb 2009	Message Posted: Jul 5, 2009 9:44:32 AM Ignore Tundralimited2009 Report Abuse Money is Power
opecsucks76 Sophomore Author Milwaukee Posts:120 Points:171,360 Joined:Jan 2009	Message Posted: Jul 5, 2009 9:43:09 AM Ignore opecsucks76 Report Abuse Take oil off the commodities exchange, or regulate trades and kill speculation, and have this anal plug castrated.
JCUBE Champion Author Michigan Posts:2,100 Points:673,290 Joined:Aug 2003	Message Posted: Jul 5, 2009 9:39:08 AM Ignore JCUBE Report Abuse More trader BS, they got caught with their hand in the till.
gasman50 Champion Author Portland Posts:2,489 Points:1,151,630 Joined:Nov 2005	Message Posted: Jul 5, 2009 9:37:36 AM Ignore gasman50 Report Abuse Very bad, very very bad
CruisinLinda Champion Author Tallahassee Posts:4,987 Points:1,012,410 Joined:Sep 2005	Message Posted: Jul 5, 2009 9:36:10 AM Ignore CruisinLinda Report Abuse A buyer can bid as high as desired to buy oil, and the seller can accept it. That's legal. Steve Perkins bid to high, raising the market price and costing his employer $10 million. Which line is he waiting in now?
lightbulbman2008 Champion Author Worcester Posts:10,600 Points:366,460 Joined:Oct 2008	Message Posted: Jul 5, 2009 9:33:14 AM Ignore lightbulbman2008 Report Abuse thats putting it mildly Lonewolftx.
drill69 All-Star Author Dayton Posts:685 Points:93,610 Joined:Oct 2008	Message Posted: Jul 5, 2009 9:31:30 AM Ignore drill69 Report Abuse LOL hope things get better soon............................................
DickAAA All-Star Author St. Louis Posts:981 Points:608,900 Joined:Jan 2005	Message Posted: Jul 5, 2009 9:30:40 AM Ignore DickAAA Report Abuse PUT PERKINS IN JAIL AND FINE THE COMPANY.
murdershewrote Champion Author Riverside Posts:3,251 Points:1,348,685 Joined:Mar 2005	Message Posted: Jul 5, 2009 9:29:29 AM Ignore murdershewrote Report Abuse str8 to the slammer
jd2009 Champion Author Honolulu Posts:1,105 Points:288,740 Joined:Jan 2009	Message Posted: Jul 5, 2009 9:27:01 AM Ignore jd2009 Report Abuse Steve Perkin needs to go directly to jail do not pass go ... we need more oversight for these speculators
matifu Veteran Author Florida Posts:319 Points:79,365 Joined:Mar 2009	Message Posted: Jul 5, 2009 9:26:56 AM Ignore matifu Report Abuse I don't think it is only Mr Perkins. But who could be trusted to investigate this huge money making machine. Forget about it. We have to eat their "waste"
Lonewolftx Champion Author Houston Posts:7,324 Points:1,447,015 Joined:Sep 2005	Message Posted: Jul 5, 2009 9:25:35 AM Ignore Lonewolftx Report Abuse Poor security in the oil trading units eh?
gabbygusIN All-Star Author Indiana Posts:938 Points:311,575 Joined:Oct 2008	Message Posted: Jul 5, 2009 9:22:18 AM Ignore gabbygusIN Report Abuse Set a example that this will not happen again!
REVLAW Champion Author San Antonio Posts:3,942 Points:748,740 Joined:Jul 2007	Message Posted: Jul 5, 2009 9:21:39 AM Ignore REVLAW Report Abuse Perhaps the loss will cause them to "reign" in the speculation. Good to know that those seeking manipulate and to "take advantage" in "times like these" can still bet "nipped in the butt".
v240 All-Star Author Pennsylvania Posts:531 Points:438,825 Joined:Feb 2007	Message Posted: Jul 5, 2009 9:19:56 AM Ignore v240 Report Abuse Jail - and/or fines that take everything he has !!
Jeepp Champion Author Boston Posts:1,121 Points:332,960 Joined:Nov 2008	Message Posted: Jul 5, 2009 9:19:18 AM Ignore Jeepp Report Abuse They need to set up some safe guards so this can't happen.
reichera Champion Author Virginia Posts:4,809 Points:849,115 Joined:Aug 2006	Message Posted: Jul 5, 2009 9:18:59 AM Ignore reichera Report Abuse Bust 'em. Make them work on an offshore oil rig for 5 years.
ARCO Rookie Author Pittsburgh Posts:42 Points:1,275,215 Joined:Sep 2005	Message Posted: Jul 5, 2009 9:17:30 AM Ignore ARCO Report Abuse JAIL TIME!!!
Theczecho Champion Author Long Island Posts:1,028 Points:346,090 Joined:Aug 2008	Message Posted: Jul 5, 2009 9:16:46 AM Ignore Theczecho Report Abuse They all belong in jail.
eddyp94 Champion Author Ontario Posts:2,724 Points:585,410 Joined:Mar 2008	Message Posted: Jul 5, 2009 9:16:05 AM Ignore eddyp94 Report Abuse greed is another reason to raise prices...
Don20 Champion Author Oklahoma City Posts:3,325 Points:1,367,500 Joined:Mar 2005	Message Posted: Jul 5, 2009 9:15:04 AM Ignore Don20 Report Abuse I hope he loose his rear end. Serves him right..
Chazzy12 Champion Author Massachusetts Posts:1,679 Points:305,210 Joined:Dec 2008	Message Posted: Jul 5, 2009 9:14:57 AM Ignore Chazzy12 Report Abuse Dishonesty and price manipulation in the futures market? No! The pillory for Perkins and his boss. It wouldn't be the first time that was seen in lower Manhattan.
TRAIN RIDER Champion Author San Bernardino Posts:2,877 Points:1,518,395 Joined:Oct 2004	Message Posted: Jul 5, 2009 9:14:17 AM Ignore TRAIN RIDER Report Abuse IT IS NICE TO HEAR OF ONE OF THESE GROUPS LOSING MONEY, BECAUSE WE ARE LOSING MONEY AT THE PUMP BECAUSE OF THEM.
Number43 Champion Author Lexington Posts:2,030 Points:395,435 Joined:Oct 2008	Message Posted: Jul 5, 2009 9:14:15 AM Ignore Number43 Report Abuse He just got caught doing what the rest of them are still doing.
skyhawkcam All-Star Author Richmond Posts:698 Points:319,120 Joined:Oct 2008	Message Posted: Jul 5, 2009 9:10:49 AM Ignore skyhawkcam Report Abuse Like I keep saying, take oil off the futures and commodities markets and put these guys (a) out of business and (b) behind bars for this kind of stunt.
CharlieC08 Champion Author Colorado Posts:2,352 Points:363,320 Joined:Oct 2008	Message Posted: Jul 5, 2009 9:09:14 AM Ignore CharlieC08 Report Abuse Probably haven't heard the last of him.
CptnCanada Champion Author Saskatoon Posts:1,357 Points:221,640 Joined:Jun 2008	Message Posted: Jul 5, 2009 9:05:52 AM Ignore CptnCanada Report Abuse And what will happen to them for this?....NOTHING...
Zygnatz Champion Author British Columbia Posts:6,760 Points:1,327,010 Joined:Oct 2005	Message Posted: Jul 5, 2009 9:05:52 AM Ignore Zygnatz Report Abuse Hope the slime balls go down for trying to fleece us.
Hunter114 Champion Author Chicago Posts:1,545 Points:206,395 Joined:Apr 2009	Message Posted: Jul 5, 2009 9:03:11 AM Ignore Hunter114 Report Abuse They're coming down hard on the broker. How about coming down hard on OPEC??
toadNY All-Star Author Albany Posts:861 Points:285,720 Joined:Apr 2008	Message Posted: Jul 5, 2009 9:00:36 AM Ignore toadNY Report Abuse But its not GREED it caused by us in Demand for oil an gas. YEA RIGHT!
us412 Champion Author Arkansas Posts:10,796 Points:1,173,645 Joined:Apr 2006	Message Posted: Jul 5, 2009 8:59:01 AM Ignore us412 Report Abuse This Perkins guy must have had a brain meltdown or really big, brass balls. And yes, this speculation can be stopped. Use cash not credit, and pony up all the money rather than the small % required now. [Edited by: us412 at 7/5/2009 10:04:05 AM EST]
StuCoFromage37 All-Star Author Illinois Posts:689 Points:109,055 Joined:May 2009	Message Posted: Jul 5, 2009 8:56:43 AM Ignore StuCoFromage37 Report Abuse They do manipulate the prices, definitely.
tankneverfull Champion Author Charlotte Posts:2,766 Points:541,570 Joined:Apr 2008	Message Posted: Jul 5, 2009 8:56:36 AM Ignore tankneverfull Report Abuse You have a BROKEN system when one person or house can change the market, yes Margaret it is that simple!
JadeKY Champion Author Louisville Posts:2,330 Points:465,780 Joined:May 2008	Message Posted: Jul 5, 2009 8:56:09 AM Ignore JadeKY Report Abuse Too much corruption and not enough oversight.
lonelyshark Champion Author Colorado Posts:2,569 Points:447,285 Joined:Jun 2008	Message Posted: Jul 5, 2009 8:56:02 AM Ignore lonelyshark Report Abuse And yesterday there was an article predicting oil at $20 a barrel. These analysts are a bunch of random number generators.
Dennis783 Champion Author Wisconsin Posts:7,381 Points:1,472,655 Joined:Sep 2005	Message Posted: Jul 5, 2009 8:55:33 AM Ignore Dennis783 Report Abuse there are no real controls over someone who wants to manipulate the price
jimshell Champion Author Pennsylvania Posts:1,045 Points:252,280 Joined:Sep 2004	Message Posted: Jul 5, 2009 8:54:53 AM Ignore jimshell Report Abuse PVN should be fined another 10 million.
hauler43 Champion Author Oakland Posts:3,544 Points:1,575,690 Joined:Sep 2003	Message Posted: Jul 5, 2009 8:53:52 AM Ignore hauler43 Report Abuse Mr.Perkins did a no no. Some folks will take advantage of the power given to them and use it too no good.