US puts in place new rule to curb oil price manipulation

US puts in place new rule to curb oil price manipulation
# 10 August 2009 10:35 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. The U.S. Federal Trade Commission (FTC) issued a final rule on Thursday to curb price manipulation in oil trading markets.
The rule will prohibit fraud or deceit in wholesale petroleum markets, and omissions of material information that are likely to distort petroleum markets, according to a statement released by the FTC.
The FTC’s approval of the rule concludes a proceeding that incorporated several rounds of public comment. The final rule will become effective on November 4, 2009. The Commission issued this Rule under the Energy Independence and Security Act of 2007.
"This new rule will allow us to crack down on fraud and manipulation that can drive up prices at the pump," said FTC Chairman Jon Leibowitz. "We will police the oil markets -- and if we find companies that are manipulating the markets, we will go after them."
Specifically, the final rule prohibits any person, directly or indirectly, in connection with the purchase or sale of crude oil, gasoline, or petroleum distillates at wholesale, from (a) knowingly engaging in any act, practice, or course of business -- including making any untrue statement of material fact -- that operates or would operate as a fraud or deceit upon any person; or(b) intentionally failing to state a material fact that under the circumstances renders a statement made by such person misleading, provided that such omission distorts or is likely to distort market conditions for any such product.
Anyone violating the fuel faces civil penalties of up to 1 million U.S. dollars per violation per day, in addition to any relief available to the Commission under the FTC Act.  
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