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Platts Says Commodity-Price Transparency at Risk From Regulation

European antitrust authorities raided Platts’ offices, along with those of Statoil ASA, BP Plc (BP/) and Royal Dutch Shell Plc, in May as part of an investigation into alleged manipulation of oil prices. Regulatory probes are expanding after banks rigged the London interbank offered rate, a benchmark for $300 trillion of global interest-rate contracts.

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By Isaac Arnsdorf: July 31, 2013

Increased regulation of methods used to establish commodities prices could backfire by reducing transparency as market participants may stop giving information, according to Platts, a price publisher.

“Commodity-price discovery depends on the voluntary participation of traders, producers and other market players,” the unit of McGraw Hill Financial Inc. (MHFI:US) said in an e-mailed response to questions. “Regulation could have the inadvertent consequence of inhibiting participation in the price-assessment process which would, in turn, decrease transparency, thus having the opposite effect of regulators’ intentions.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

U.K. Regulators Reviewing Criminal Probe Over Oil Benchmarks

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Screen Shot 2013-07-15 at 16.05.05July 15, 2013: The U.K. antitrust regulator said it was reviewing whether there is enough evidence to start a criminal probe into manipulation of oil benchmarks while European Union officials conduct a civil investigation.

The U.K. Office of Fair Trading said it was working with prosecutors and regulators to determine which agency should take a lead role. The EU in May raided Platts, Royal Dutch Shell Plc (RDSA), BP Plc (BP/), and Statoil ASA (STL) as part of a civil investigation into the possible rigging of benchmark energy assessments. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

BP, Shell, Statoil Face FTC Scrutiny in U.S. Oil Probe

Screen Shot 2013-05-17 at 01.06.41BP Plc, Royal Dutch Shell Plc (RDSA) and Statoil ASA (STL) are under scrutiny by the U.S. Federal Trade Commission as the agency probes whether they manipulated oil benchmarks published by Platts, according to a person familiar with the matter. The agency will probably issue civil investigative demands, which are similar to subpoenas, to oil companies, trading firms and pricing services as the investigation progresses…

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By Sara Forden – Jul 12, 2013 1:08 AM GMT+0100

BP Plc, Royal Dutch Shell Plc (RDSA) and Statoil ASA (STL) are under scrutiny by the U.S. Federal Trade Commission as the agency probes whether they manipulated oil benchmarks published by Platts, according to a person familiar with the matter.

The FTC’s early-stage investigation into oil prices mirrors a review by the European Union, which raided the offices of the three companies and Platts in May, two people familiar with the probe said last month. Platts, the energy news and data provider owned by McGraw Hill Financial Inc. (MHFI), publishes the Dated Brent benchmark that contributes to setting the price of more than half the world’s oil. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

BP, Shell Slammed With More Crude-Oil Price-Fixing Claims

BP, Shell and Statoil have been barraged by suits since acknowledging that they were among the companies hit in a surprise raid launched by the European Commission and the Norwegian Competition Authority in May. This action arises from Defendants’ unlawful combination, agreement, and conspiracy to fix and restrain trade in, and intentional manipulation of, North Sea Brent Crude Oil (“Brent Crude oil”) and the prices of Brent Crude oil futures contracts traded on the New York Mercantile Exchange…

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By Gavin Broady

Law360, New York (July 02, 2013, 7:54 PM ET) — An Illinois private placement fund mounted a putative class action against BP PLC, Royal Dutch Shell PLC and Statoil ASA in New York Monday over the alleged crude oil futures manipulation scheme that put the companies in the crosshairs of a recent European regulatory sting.

White Oaks Fund LP is suing the energy companies over a purported plot to manipulate the price of North Sea Brent crude oil and Brent crude oil futures contracts by providing bogus pricing information to Platts, which publishes benchmark price assessments in the energy sector. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Oil Benchmarks Go From Trusted to Tainted as EU Missed Warning

The European Union’s top energy official ignored a warning delivered in 2009 about potential manipulation of Platts oil benchmarks “because markets trusted” them. The warning went unheeded until May, when EU antitrust officials raided Platts, Royal Dutch Shell Plc, BP Plc, and Statoil ASA as part of an investigation into the possible rigging of benchmark energy assessments.

Screen Shot 2012-11-19 at 09.32.24 By Gaspard Sebag: June 30, 2013

The European Union’s top energy official ignored a warning delivered in 2009 about potential manipulation of Platts oil benchmarks “because markets trusted” them.

Andris Piebalgs, who was EU energy commissioner from 2004 to 2010, cited the confidence traders had in the pricing system when a lawmaker questioned the reliability of Platts’ prices more than three years ago. The warning went unheeded until May, when EU antitrust officials raided Platts, Royal Dutch Shell Plc (RDSA), BP Plc (BP/), and Statoil ASA (STL) as part of an investigation into the possible rigging of benchmark energy assessments. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

U.S. FTC Said to Open Oil Price Probe, Mirroring EU Inquiry

Screen Shot 2013-05-17 at 01.06.41June 25 (Bloomberg) — The U.S. Federal Trade Commission opened a formal investigation into how prices of crude oil and petroleum-derived products are set, mirroring a European Union inquiry, two people familiar with the matter said.  The investigation, now in a preliminary stage, will probably broaden into a multi-jurisdictional affair…

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U.S. FTC Said to Open Oil Price Probe, Mirroring EU Inquiry

Jun 25, 2013 12:01 am ET

June 25 (Bloomberg) — The U.S. Federal Trade Commission opened a formal investigation into how prices of crude oil and petroleum-derived products are set, mirroring a European Union inquiry, two people familiar with the matter said.

The investigation, now in a preliminary stage, will probably broaden into a multi-jurisdictional affair like the inquiry into manipulation of the London interbank offered rate, or Libor, the people said. FTC investigators are reviewing the progress made by their European counterparts, the people said, asking not to be identified because the matter is confidential. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Everything you need to know about the oil price fixing scandal

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Screen Shot 2013-05-17 at 01.06.41Shane Ferro

The Wall Street Journal has a painstakingly detailed article on how oil prices are benchmarked, and how those benchmarks can be manipulated. The EU has been investigating major oil companies, as well as the industry publication that sets the daily benchmark price, since last month. If the probe turns up damning evidence, this could be the biggest price-fixing scandal since Libor.

What’s going on here?

In mid-May, EU investigators raided the offices of Shell, BP and Statoil, three of Europe’s largest oil exporters. They also hit Platts, which takes pricing data from oil traders and uses it to set a daily oil-price benchmark. The raids come on the heels of the Libor scandal, in which some of the world’s largest banks were fined for manipulating interest rate benchmarks. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

New oil licenses fuel Barents battle

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June 13, 2013

Oil & Energy Minister Ola Borten Moe splashed more oil on the simmering battle over the Barents Sea this week when he announced the award of 20 new oil production licenses in the area. He also awarded four more in the Norwegian Sea, and environmentalists were not pleased.

Some of the bullish Norwegian oil minister’s awards allow oil companies to venture closer to the sensitive Arctic waters around Svalbard, and that’s a highly controversial move. Oil companies won permission to look for new sources of oil and gas above 74-degrees latitude and not only environmental groups have been opposed to that. Newspaper Aftenposten noted that countries including Great Britain and Russia have erlier expressed that a border in principle runs along the 74-degree mark. Areas beyond that are in the so-called “Svalbard box” which they don’t think Norway has the right to manage alone. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Norway grants 24 oil licenses in Arctic-focused round

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Wed Jun 12, 2013 6:16am EDT

* 24 licenses awarded to 29 companies

* Statoil, Shell, Conoco, Total, ENI among winners

* 36 oil firms had applied, 86 blocks were on offer

OSLO, June 12 (Reuters) – Norway awarded 24 oil and gas exploration licences on Wednesday, focusing on the Arctic Barents Sea, in an effort to prolong oil output after more than a decade of decline.

Statoil, ConocoPhillips, Shell, Total, ENI and nine other firms received the right to operate licences, while a total of 29 firms won stakes in licences. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Third US Lawsuit alleging oil price manipulation

Screen Shot 2013-05-17 at 01.06.41A European Union oil price-fixing investigation has prompted a Shreveport businessman to file a federal lawsuit in Baton Rouge against BP, Royal Dutch Shell and Statoil ASA. Harter’s lawsuit asks that a federal judge prevent the oil companies and Platts from destroying any documents or records relating to setting the price of oil.

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By Ted Griggs, Advocate business writer: June 11, 2013

A European Union oil price-fixing investigation has prompted a Shreveport businessman to file a federal lawsuit in Baton Rouge against BP, Royal Dutch Shell and Statoil ASA.

The lawsuit seeking class-action status by David Harter claims the companies illegally manipulated the price of crude from at least 2002 to now, violating state and federal anti-trust laws.

In May, European Commission investigators raided the offices of BP, Shell, Statoil and Platts, which publishes benchmark oil prices. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

New Oil Price Fixing Lawsuit Against Shell, BP and Statoil

BP Plc, Statoil and Royal Dutch Shell Plcwere named in a lawsuit accusing them of manipulating the price of North Sea Brent crude oil and futures contracts. Smith claimed the oil companies violated U.S. antitrust law and the Commodity Exchange Act. He is seeking unspecified damages, which may be tripled under antitrust law.

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BP, Shell, Statoil Sued Over Claim of Oil Price Manipulation

By Bob Van Voris: June 10, 2013

BP Plc (BP/), Statoil ASA and Royal Dutch Shell Plc (RDSA) were named in a lawsuit accusing them of manipulating the price of North Sea Brent crude oil and futures contracts.

Gregory Smith, a Texas trader who claims he overpaid for Brent crude oil futures, sued the oil companies in Manhattan federal court today. Smith claimed the companies intentionally reported false prices to Platts, a division of McGraw Hill Financial Inc. (MHFI), which publishes benchmark prices for the oil industry. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Kulluk report due in July as hearings end

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Screen Shot 2013-06-09 at 00.33.11By Tim Bradner, Alaska Journal of Commerce: June-Issue-2 2013

Two weeks of U.S. Coast Guard hearings on the grounding of Shell’s drill rig Kulluk concluded May 30. A report on conclusions of the inquiry is due in early July, but that deadline may be extended, Coast Guard Lt. Commander Brian McNamara said.

Coast Guard officials are probing Shell’s decisions and risk analysis in sending the drill rig across the Gulf of Alaska under tow during the winter, and whether the proper tugs and tow equipment were used. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell’s Peter Voser: we have ‘nothing to hide’ on oil pricing

Royal Dutch Shell, one of the energy giants under investigation for suspected oil price rigging, has “nothing to hide”, its chief executive Peter Voser has said.

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By 6:02PM BST 05 Jun 2013

European Commission investigators raided Shell’s offices last month on suspicion the oil major could have colluded with BP and Norway’s Statoil to manipulate the price-reporting process for more than a decade.

“The investigation is ongoing and we are co-operating. It is for the European Commission to find evidence and facts at this stage,” Mr Voser said, declining to comment on details of the investigation.

But he added: “Transparency is a key word. It’s not just on pricing side, it is on taxation and in general how we do business. Shell has always been at the forefront of driving transparency. We have nothing to hide. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell’s Misadventures in Alaska

Screen Shot 2013-01-04 at 09.05.24Though Royal Dutch Shell has made major strides over the past decade in overcoming the negativity surrounding the 2004 reserve overstatement scandal, which led to the ouster of its CEO and other top executives, the company continues to be plagued by operational blunders that are straining its relationships with shareholders. At the company’s annual meeting last Tuesday, top executives were overwhelmed by a barrage of questions from anxious shareholders about the company’s beleaguered oil campaign off the northern coast of Alaska, which, despite nearly $5 billion of investment, has yet to produce a single drop of oil. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Oil executives tune out the call of the wild Arctic

Screen Shot 2013-01-10 at 16.33.18The Arctic may hold 13 percent of the world’s undiscovered oil and 30 percent of its gas, but a series of blunders and failures there are making executives fight shy of such a sensitive area and turn their attention back to more conventional resources and the shale revolution. The turning point likely came on New Year’s eve, when Royal Dutch Shell’s drillship ran aground in rough waters off Alaska, setting off a public relations storm that inflicted much pain on the firm, made more acute by how little it had to show for the $4.5 billion it has spent on the Arctic since 2005. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Oil Probe That EU Says Mirrors Libor May Reveal Huge Damage

Oil-price manipulation may have wrought “huge” damage to consumers, the European Union’s antitrust chief said today, as he drew comparisons with EU investigations into rigging of bank rates including Libor.

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EU Competition Commissioner Joaquin Almunia said, “If de facto the manipulation is confirmed, indeed, huge damages for consumers and users would have been originated by this.” Photographer: Andrew Harrer/Bloomberg

By Stephanie Bodoni May 28, 2013

Oil-price manipulation may have wrought “huge” damage to consumers, the European Union’s antitrust chief said today, as he drew comparisons with EU investigations into rigging of bank rates including Libor.

While it’s too soon to draw conclusions from the May 14 raids on Royal Dutch Shell Plc (RDSA), BP Plc (BP/), Statoil ASA (STL) and Platts, EU Competition Commissioner Joaquin Almunia said both sets of probe target price manipulation through a reporting system. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

BP & Shell Fixed North Sea Oil Prices for a Decade, Trader Says

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

As Shell faces price-rig probe, its UK boss Ed Daniels backs an overhaul

Shell UK chairman Ed Daniels was away on business when investigators from the European Commission came calling at his London office this month over sensational allegations of price-rigging in the oil market. ‘But I heard about it pretty quickly,’ he says wryly. Unsurprisingly, it is not a subject he is eager to discuss:

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Targeted: Ed Daniels said Shell is co-operating with an EC investigation

By Helen Loveless: PUBLISHED: 22:02, 25 May 2013 | UPDATED: 22:02, 25 May 2013

Shell UK chairman Ed Daniels was away on business when investigators from the European Commission came calling at his London office this month over sensational allegations of price-rigging in the oil market.

‘But I heard about it pretty quickly,’ he says wryly.

Unsurprisingly, it is not a subject he is eager to discuss: ‘We are fully co-operating with the investigation with the EC. We will continue to co-operate. More than that I can’t say.’ read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

First online publication of oil price fixing US lawsuit against Shell, BP & Statoil

Screen Shot 2013-05-17 at 01.06.41This action arises from Defendants’ unlawful combination, agreement and conspiracy to fix and restrain trade in, and intentional manipulation of North Sea Brent Crude Oil (“Brent Crude oil”) and the prices of Brent Crude oil futures contracts…: Defendants deliberately reported inaccurate, misleading and false information regarding Brent Crude oil prices to Platts…

By John Donovan

You may have seen reference on this website to the class action lawsuit launched in the USA by Prime International Trading, Ltd against Royal Dutch Shell, BP and Statoil, for alleged oil price-fixing.

We are the first to provide free access to the relevant CLASS ACTION COMPLAINT – ALL 53 pages

Searchable version can be supplied by email on request to [email protected]

The proceedings were issued on 22 May 2013.

Some extracts:

1. This action arises from Defendants’ unlawful combination, agreement and conspiracy to fix and restrain trade in, and intentional manipulation of North Sea Brent Crude Oil (“Brent Crude oil”) and the prices of Brent Crude oil futures contracts traded on the New York Mercantile Exchange (“NYMEX”) and the Intercontinental Exchange (“‘ICE”) during the period of at least 2002 through the present (the “Class Period”), in violation of the Commodity Exchange Act….2. Defendants deliberately reported inaccurate, misleading and false information regarding Brent Crude oil prices to Platts, a unit of McGraw Hill Financial Inc.,and the leading global provider of spot and contract pricing for the physical and financially settled derivatives Brent Crude oil markets. Platts’ Brent Crude oil prices are used to price and settle physical floating Brent Crude oil deals under long-term contracts on a physical (spot) basis, and to settle Brent Crude oil derivatives contracts, including NYMEX and ICE Brent Crude oil futures contracts. False reporting of Brent Crude oil prices to Platts thereby undermines the entire ‘pricing structure for the Brent Crude oil market.

6. On May 17,2013, the U.K. Serious Fraud Office announced that it was “urgently reviewing” the European Commission’s allegations of price-fixing in the oil markets and determining whether to accept the case for “criminal investigation.” That same day, the United States Senate called for the U.S. Department of Justice to join the European Commission investigation. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.