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Yes, Let The Markets Work!

Mike

Well-known member
Pipeline woes, Gasoline Manipulation Charges Plus...........

Regulators allege its BP Products North America subsidy artificially forced up prices by buying up huge propane stocks only to withhold them from the market.

BP has denied the civil charges and said it intended to defend itself, and added that staff had been dismissed. On Wednesday, a former BP trader, Dennis Abbott, pleaded guilty to manipulating the propane market.

The charges against BP come as US consumers face increased petrol and heating oil costs caused by a surge in global commodity prices.

The Commodity Futures Trading Commission (CFTC), which regulates the market, said the propane had been needed to fuel homes in rural areas.

Particularly in the north-eastern and mid-western regions of the US, propane is by far the main source of domestic heating - and constitutes a growing slice of household budgets.

Investigators allege that during February 2004 propane prices jumped more than 40% to about 90 cents a gallon, a price that "would not otherwise have been reached under normal pressures of supply and demand".

They claim that BP managed to ramp up the price by buying stocks of propane until it controlled almost 90% of the domestic market.

"Cornering a commodity market is more than a threat to market integrity," said Gregory Mocek, the CFTC's enforcement director. "It is an illegal activity that could have repercussions for commercial market participants as well as retail consumers around this country," he added.

The CFTC estimated that about seven million people were using propane for heating and cooking in 2003.

Ronnie Chappell, a BP spokesman, said "market manipulation did not occur". But he added that following an internal investigation, the firm found that several employees failed "to adhere to BP policies governing trading activities" and had been dismissed.

"We have also taken steps to strengthen the supervision of our trading activities," he added.

The CFTC alleges that the market manipulation was carried out "with the knowledge, advice and consent of senior management" at BP Products North America.

Mr Abbott pleaded guilty to charges that he tried to "manipulate and corner the propane market".

The 34-year-old from Houston has agreed to cooperate with authorities in their investigation and faces up to five years in jail and a fine of up to $250,000.
 

TSR

Well-known member
Mike said:
Pipeline woes, Gasoline Manipulation Charges Plus...........

Regulators allege its BP Products North America subsidy artificially forced up prices by buying up huge propane stocks only to withhold them from the market.

BP has denied the civil charges and said it intended to defend itself, and added that staff had been dismissed. On Wednesday, a former BP trader, Dennis Abbott, pleaded guilty to manipulating the propane market.

The charges against BP come as US consumers face increased petrol and heating oil costs caused by a surge in global commodity prices.

The Commodity Futures Trading Commission (CFTC), which regulates the market, said the propane had been needed to fuel homes in rural areas.

Mike, You anti corporate scoundrel . Do you think this could possibly be true???? UP TO 5 yrs and a $250,000 fine. By golly he will probably get fired and walk away with nothing. Yeah right.

Particularly in the north-eastern and mid-western regions of the US, propane is by far the main source of domestic heating - and constitutes a growing slice of household budgets.

Investigators allege that during February 2004 propane prices jumped more than 40% to about 90 cents a gallon, a price that "would not otherwise have been reached under normal pressures of supply and demand".

They claim that BP managed to ramp up the price by buying stocks of propane until it controlled almost 90% of the domestic market.

"Cornering a commodity market is more than a threat to market integrity," said Gregory Mocek, the CFTC's enforcement director. "It is an illegal activity that could have repercussions for commercial market participants as well as retail consumers around this country," he added.

The CFTC estimated that about seven million people were using propane for heating and cooking in 2003.

Ronnie Chappell, a BP spokesman, said "market manipulation did not occur". But he added that following an internal investigation, the firm found that several employees failed "to adhere to BP policies governing trading activities" and had been dismissed.

"We have also taken steps to strengthen the supervision of our trading activities," he added.

The CFTC alleges that the market manipulation was carried out "with the knowledge, advice and consent of senior management" at BP Products North America.

Mr Abbott pleaded guilty to charges that he tried to "manipulate and corner the propane market".

The 34-year-old from Houston has agreed to cooperate with authorities in their investigation and faces up to five years in jail and a fine of up to $250,000.
 

mrj

Well-known member
God forbid.......oh, that's right, it isn't God forbidding here......it's Mike and friends! What a surprise. Not!

Obviously the concept of allowing the courts to decide before we judge a company is quite foreign to some on this forum.

Let us know when there are convictions.

MRJ
 

ocm

Well-known member
MRJ said:
God forbid.......oh, that's right, it isn't God forbidding here......it's Mike and friends! What a surprise. Not!

Obviously the concept of allowing the courts to decide before we judge a company is quite foreign to some on this forum.

Let us know when there are convictions.

MRJ

Did you miss this one?

Mr Abbott pleaded guilty to charges that he tried to "manipulate and corner the propane market".
 

the chief

Well-known member
ocm said:
MRJ said:
God forbid.......oh, that's right, it isn't God forbidding here......it's Mike and friends! What a surprise. Not!

Obviously the concept of allowing the courts to decide before we judge a company is quite foreign to some on this forum.

Let us know when there are convictions.

MRJ

Did you miss this one?

Mr Abbott pleaded guilty to charges that he tried to "manipulate and corner the propane market".

Never let the facts get in the way of a good tirade against those of us who see through corporate deception and thievery, MRJ. :lol: :lol: :lol:
 

feeder

Well-known member
Well, if this is the case, I feel used and abused. We just booked our propane needs for the winter and it was high!!!! I could have used that extra money to have some fun!
 

Andy

Well-known member
I hate to see the courts step in and tell private bussiness what to do, but if a bussiness can single handed move the market something needs to be done.
 

Sandhusker

Well-known member
Allow me to put on the hat of my alter-ego, ~SSHH~; "Who are they to say who can and can't own propane? Obviously, BP was the highest bidder!"

:wink:
 

mrj

Well-known member
And some on this site accuse me of being reading comprehension challenged!!!!

Apparently some of you missed this: "Regulators ALLEGE....BP has DENIED....staff ...dismissed.....a FORMER BP TRADER pleaded guilty....investigators ALLEGE.....employees FAILED to adhere to BP policies governing trading activities and had been DISMISSED....CFTC ALLEGES....Mr. ABBOTT (not the BP company) pleaded guilty to manipulating the propane market.

It was not I who "let the facts get in the way of a good tirade", however, your tirades, as usual are against business, and allowing the court system to complete their processes and make the judgements.

Apparently, you folks prefer to make your own judgements based on a brief 'news' story, and determine the guilt or innocence so you can get on with tarring and feathering, or lynching anyone in one of those 'evil' corporations you love to hate.

And I'm guilty of doing some of that myself.....judging you on what you have repeatedly written on this forum against many such corporations, but in self-defense, I am using your own words convict you.

MRJ
 

feeder

Well-known member
Whew, I'm glad I used the word "IF" in my post!! I'd hate to be convicted. I have such a phobia of going to jail.
 

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