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Price fixing

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

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

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Collusion in reference prices for oil?

EXTRACTS: Oil market participants have called into question the accuracy of Platts’s benchmarks. In an August letter to the International Organization of Securities Commissions, Total Oil Trading, an arm of French oil company Total, said Platts’s prices are “out of line with our experience” several times a year. Spokesmen for BP, Shell, and Statoil declined to comment.

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Europe’s Oil Market Gets Its Own Price Benchmarks Scandal

By , , and : May 23 2013

Statoil (STO) sold a tanker of Norwegian crude valued at about $63 million to BP (BP) on May 9. That transaction, which wasn’t subject to any oversight by financial authorities, would help set the price of more than half the world’s oil. The deal was reported to Platts, a unit of McGraw Hill Financial (MHFI), which uses information from traders and others involved in the market to set benchmarks for oil and related products. Platts’s figures help determine the price refiners pay for crude, which in turn affects what consumers pay for gasoline and diesel fuel. read more

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Petrol retailers to hand allegations of manipulation to European investigators

Allegations of “malpractice” in the oil market that could have cost drivers hundreds of pounds will be handed over to European investigators by a group representing 5,000 independent garages.

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Screen Shot 2013-05-17 at 01.06.41By Rowena Mason, Political Correspondent: 12:01AM BST 23 May 2013

The Petrol Retailers’ Association said it has turned to the European Commission after British authorities failed to act on its “formal and detailed complaint” alleging “anti-competitive practices” in the oil and petrol markets.

The European Commission last week raided the offices of BP and Shell in London over suspicions oil companies have “colluded” to distort fuel prices. The companies have confirmed they are fully co-operating with the investigation but cannot comment further while the investigation is underway. read more

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Watchdogs join oil giants on rack in price-fix case

Screen Shot 2013-01-31 at 08.47.44It is not the first time oil companies have been in regulators’ cross hairs. In September 2006, the European Commission fined 14 firms €266.7m (£224.8m) for rigging the price of bitumen over eight years in the Netherlands. Shell received the biggest penalty.

FROM THE SUNDAY TIMES Page 9, 19 May 2013

Watchdogs join oil giants on rack in price-fix case

After whistleblowers’ claims of rigging failed, Brussels is trying to prove it

Extracts from the article by Karl West

It was June last year, and Halfon had just received an email from an oil trader who wanted to expose the tricks used to manipulate oil prices.

Abbott was sent to make sure the person purporting to be a trader was not a crank.

First impressions were good. The middle-aged man was dressed in a smart navy suit, and it was soon clear that he had a “forensic” knowledge of the oil futures market.

It is not the first time oil companies have been in regulators’ cross hairs. In September 2006, the European Commission fined 14 firms €266.7m (£224.8m) for rigging the price of bitumen over eight years in the Netherlands. Shell received the biggest penalty. read more

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Price-fixing investigation targeting Shell, BP, and StatOil

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John,

Your readers may find the following links interesting in view of the latest allegations regarding Royal Dutch Shell, BP, StatOil, and perhaps others:

Racketeer Influenced and Corrupt Organizations Act – Wikipedia, the 

en.wikipedia.org/…/Racketeer_Influenced_and_Corrupt_Organizations_...‎

This law-related article does not cite its references or sources. You can help Wikipedia by including appropriate 

Summary – RICO predicate offenses – Application of RICO laws – Famous cases

18 USC Chapter 96 – RACKETEER INFLUENCED AND CORRUPT 

www.law.cornell.edu › USC › Title 18 › Part I

The Congress number forms the first part of the Public Law number; each Congress  The Public Law field is linked to the development of the law in the Thomas system  RICO · Equal Employment Opportunity Commission · Affirmative action  read more

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Shell directors face up to 5 years in jail if guilty of price-fixing

Screen Shot 2013-05-17 at 01.06.41By John Donovan

Assessment of current situation in the price-rigging investigation partly based on an articled published today by The Lawyer today under the headline “All eyes on energy“:

  • Royal Dutch Shell is being advised by Clifford Chance in relation to the allegations of price-fixing.
  • Competition lawyers say that the investigation could be “bigger than Libor”.
  • If the allegations prove to be true, there is the prospect of unlimited fines and jail terms of up to 5 years for  directors.
  • There is an incentive of reduced sanctions dependent on the degree of co-operation i.e. turning informer.
  • Shell has confirmed that it is co-operating with the investigation.
  • Shell lawyers will have to decide whether to defend or continue to co-operate.
  • read more

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    EU oil price probe underlines flawed system

    FINANCIAL TIMES

    By Ajay Makan and Javier Blas in London: May 17, 2013 5:48 pm

    In simultaneous raids this week on the offices of the oil majors BP, Royal Dutch Shell and Statoil of Norway, and Platts, a leading price reporting agency that helps set energy benchmark prices, the European Commission has fired the starting gun on one of the biggest cross-country investigations into benchmark pricing since banks were caught red-handed…

    (THIS IS THE BEST ARTICLE WE HAVE READ EXPLAINING ABOUT THE INVESTIGATION AND HOW ENERGY BENCHMARK PRICES ARE SET) read more

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    Shell: oil market regulation will cost consumers

    Royal Dutch Shell lobbied against proposed European rules designed to clamp down on commodity market abuse, arguing they would raise costs for consumers and increase market volatility.

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    Shell argued strongly against elements of EC reforms to “strengthen the fight against market abuse across commodity and related derivative markets”.

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    Emily Gosden By 10:00PM BST 18 May 2013

    The oil giant was last week raided by European Commission investigators over suspicions it could have colluded with BP and others to rig the oil price for more than a decade by reporting distorted prices to a price reporting agency (PRA).

    The investigation has reignited the broader debate around regulation of trading in commodities such as oil and gas, which affect prices paid by consumers.

    European Union politicians are considering EC plans to “strengthen the fight against market abuse across commodity and related derivative markets” and to revise the Markets in Financial Instruments Directive (MiFID II) to “enhance the transparency and oversight of derivatives markets including commodity markets”. read more

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    Shell and BP bosses met secretly to fix oil prices?

    The Sun newspaper alleges Shell boss Jeroen van der Veer secretly met Lord Browne of BP once a year to discuss oil prices. Perfectly matched pair to engage in some jiggery-pokery.

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    By John Donovan

    The Sun newspaper alleges Shell boss Jeroen van der Veer secretly met Lord Browne of BP once a year to discuss oil prices.

    Under the website headline “Shell and BP in secret meetings about oil”, the Sun is publishing an article on Sunday alleging that Jeroen van der Veer, Peter Vosers predecessor as Chief Executive of Royal Dutch Shell Plc, secretly met his BP counter-part, Lord Browne, once a year to discuss oil prices.

    (Headline in Sun Newspaper article: “I NEED WORD IN YOUR SHELL-LIKE ABOUT OIL”) read more

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    Libor in a barrel

    Oil markets fall under the suspicion of price-fixing on a global scale

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    Senator calls for U.S. to join oil price probe

    Screen Shot 2013-05-17 at 01.04.00Kevin McCoy, USA TODAY4:43 p.m. EDT May 17, 2013

    U.S. public concern over a European probe into possible oil price manipulation escalated Friday as the head of the Senate Committee on Energy and Natural Resources urged the Justice Department to join the investigation.

    The request from Sen. Ron Wyden, D-Ore., came after European Union investigators this week raided the offices of global energy giants BP, Royal Dutch Shell and Statoil. The anti-trust probe is examining whether the companies manipulated oil prices by making false reports to Platts, an energy industry data service owned by McGraw Hill Financial. read more

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    Platts in Lockdown as Investigators Continue Oil Probe

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    Screen Shot 2013-05-17 at 01.06.41Published: Friday, 17 May 2013 | 3:54 AM ET

    European anti-trust investigators searched the offices of price agency Platts and at least one major oil company for a third day on Thursday, hunting for evidence of possible price manipulation on oil markets, witnesses said.

    Authorities raided the London bureau of Platts in Canary Wharf and the offices of Statoil, Royal Dutch Shell and BP on Tuesday in the biggest trading probe since the Libor scandal.

    (Read More: EU Raids Offices of Big Oil Firms Amid Pricing Probe) read more

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    Oil price fixers should face prison

    Oil price fixers should face prison, says Cameron: ‘Rigging’ might have cost every household £2,000 

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    Oil giants Shell and BP accused of fixing prices for more than a decade. PM said allegations ‘hugely concerning’ and threatens to prosecute bosses. Experts believe scandal could have cost consumers thousands at the pump

    By Rob Davies and Jason Groves: PUBLISHED: 23:36, 15 May 2013 | UPDATED: 07:42, 16 May 2013

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    Oil traders at Shell and BP should face prison if it is proved they conspired to fix prices, David Cameron said last night.

    The Prime Minister made no attempt to disguise his anger as both of Britain’s oil giants were named among several firms accused of fixing prices for more than a decade.

    He said the allegations were ‘hugely concerning’ and that anyone held responsible would face ‘major consequences’ if the claims were proved true. read more

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    David Cameron ‘deeply’ concerned by oil price fixing claims

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    David Cameron is extremely concerned by claims of price fixing by major oil companies, Downing Street has said.

    The prime minister’s spokesman said it was “deeply worrying” if prices have been driven up for consumers.

    Oil giants including BP and Shell are facing claims they have been fixing prices for more than a decade.

    It follows a raid on the offices of BP, Royal Dutch Shell, and Norway’s Statoil by European anti-trust regulators.

    The companies said they were co-operating with investigators. read more

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    SELECTION OF SHELL RELATED ARTICLE LINKS 15 MAY 2013

    SELECTION OF SHELL RELATED ARTICLE LINKS KINDLY SUPPLIED BY A REGULAR CONTRIBUTOR

    IEA forecasts US to account for a third of new oil supplies: Financial Times-The outlook will influence businesses as diverse as major oil companies, including ExxonMobil and Royal Dutch Shell, big commodities traders …

    Oxford University won’t take funding from tobacco companies. But …: The Guardian-… on research at Manchester University partly to help it drill deeper for oil. … Over the past few days I have asked the Shell professor of earth … Floating LNG Upsets Oil and Gas Outlook in Australia, Southeast Asia: the Diplomat-As the boom in oil prices gathered pace, less economical fields became … Shell is constructing the world’s first such pontoon for use at its …

    Gas finds in east Mediterranean may change strategic balance: BBC News-“This will tremendously reduce our oil invoice and the cost of energy … They include giants such as ExxonMobil, Shell, Chevron and Total.

    “You Were Robbed”: NBC4 I-Team Exposes New “Tricks and Tactics …: NBC Southern California-So what does Jiffy Lube, owned by Shell Oil, have to say about the alleged fraud uncovered by the I-Team at some of its stores? NBC4 offered … read more

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    BP and Royal Dutch Shell raided

    BP and Royal Dutch Shell saw their offices raided today as the European Commission launched an investigation into oil price fixing. The Commission said it is concerned there has been collusion aimed at manipulating the prices of not only oil, but also petrol and biofuels.

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     A bogus market?

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    By This Is Money Reporter

    PUBLISHED: 16:58, 14 May 2013 | UPDATED: 17:17, 14 May 2013

    BP and Royal Dutch Shell saw their offices raided today as the European Commission launched an investigation into oil price fixing.

    Norway’s Statoil and price reporting agency Platts have also admitted to working with the authorities in their inquiries.

    The Commission said it is concerned there has been collusion aimed at manipulating the prices of not only oil, but also petrol and biofuels.

    It added that the anti-competitive co-operation may also have prevented others from taking part in the assessment of market prices. read more

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    Chevron, BP Price-Fixing Case Referred to South Africa Tribunal

    By Paul Burkhardt on October 24, 2012

    South Africa’s Competition Commission has recommended the maximum penalty in a price-fixing case spanning decades that involves six companies including Chevron Corp. (CVX), Royal Dutch Shell Plc (RDSA) and Total SA. (FP)

    The regulator, which has referred the matter to the Competition Tribunal for adjudication, wants the companies to be fined 10 percent of their revenues in the preceding financial year, it said in a statement today.

    The investigation “revealed collusive conduct through extensive exchanges of commercially sensitive information by the respondent oil companies,” which also include Engen (ENGN) Ltd., Sasol Ltd. (SOL), BP SA and the South African Petroleum Industry Association, or Sapia, the Pretoria-based commission said. read more

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    Shell apologises for illegal cartel meetings in Brussels probe

    From Our October 2004 Shell News Archive

    Financial Times: Shell apologises for bitumen meetings in Brussels probe

    Royal Dutch/Shell said it regretted attending meetings with roadbuilders and bitumen suppliers. The apology came as it responded to charges from the European Commission of possible price-fixing in the Dutch bitumen market.”: Rein Willems, chairman of Shell in the Netherlands, said: “We are concerned about this matter. We should not have been in these meetings and we regret our involvement in this case.”

    By James Boxell

    Published: October 22 2004

    Royal Dutch/Shell said it regretted attending meetings with roadbuilders and bitumen suppliers. The apology came as it responded to charges from the European Commission of possible price-fixing in the Dutch bitumen market.

    Rein Willems, chairman of Shell in the Netherlands, said: “We are concerned about this matter. We should not have been in these meetings and we regret our involvement in this case.”

    The Anglo-Dutch energy group, which is seeking to restore its reputation after overbooking 23 per cent of its oil reserves, said it had received a “statement of objections” from the Commission, along with 13 other bitumen market participants. read more

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    Selection of links

    LINKS TO ARTICLES THAT MAY BE OF INTEREST TO OUR VISITORS: SUPPLIED BY A REGULAR CONTRIBUTOR

    I noticed some debate in your blog about ‘price fixing’, with the Royal Dutch Shell loyalists claiming it was all the fault of ‘big government’. Right. If you believe that then you will believe that pigs can fly. Here are some articles relating to ‘price fixing’ by ‘big oil’.  Price fixing by Big Oil ??? Say it is not so !!! It is all due to Evil Bureaucrats in Big Government meddling in free markets.

    Judge approves class action lawsuit against alleged gas cartel in … read more

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    Royal Dutch Shell in another price fixing cartel?

    German Cartel Office Sees Oligopoly In German Gasoline Market

    FRANKFURT -(Dow Jones)- December 6, 2010: Germany’s Federal Cartel Office said Monday it sticks to its assessment that the country’s gasoline market is dominated by a few companies, and said mergers and takeovers in the gas stations sector will only be allowed under strict conditions.

    “The Federal Cartel Office still thinks that the vertically integrated oil companies Royal Dutch Shell PLC (RSDA), BP PLC (BP), ExxonMobil Corp. (XOM), ConocoPhillips (COP) and Total SA (TOT) for a [market] dominant oligopoly on regional filling station markets,” the antitrust authority said in an emailed statement. read more

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    Chevron and Shell facing hefty fines for price fixing in South Africa

    BusinessWeek Logo

    The Associated Press  June 21, 2010, 1:57PM ET

    SAfrican watchdog fines oil firms on price-fixing

    JOHANNESBURG

    South Africa’s anti-competition watchdog says that a number of international oil giants, including Chevron and Shell, are facing hefty fines for price collusion, a punishable offense in South Africa.

    South Africa’s Competition Tribunal, which investigates companies’ competition conduct, said Monday that between 2000 and 2009 oil companies Chevron, Shell, Engen, Total, Masana, Sasol and Tosas colluded in fixing their products’ prices. read more

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    GREECE FINES BP, SHELL $80M FOR PRICE-FIXING

    ATHENS - Greece's state competition watchdog has fined British energy giant BP and Anglo-Dutch counterpart Royal Dutch Shell the equivalent of almost $80 million Cdn for price-fixing, the body said Tuesday.

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    Shell fined $25.19 million for price fixing

    Greece's Competition Commission says it has fined the local units of oil giants BP PLC and Royal Dutch Shell PLC a total of nearly euro50 million ($64 million) for allegedly cooperating on pricing practices.

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    Record fine over cigarette price fixes

    Experts said it was too soon to tell how the settlements would affect the six other companies still involved in the case – Imperial Tobacco, Tesco, Wm Morrison,Safeway, Royal Dutch Shell and Co-operative Group

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    OFT fines six firms £173m for tobacco plot

    Investigation of the Co-op, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco is continuing.

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    OFT’s hefty fines for tobacco price fixing

    The OFT - which expects to close its case early next year - said the investigation into Co-Op, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco was continuing.

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    Price fixing allegations against Shell which has a track record of participation in illegal cartels

    Other accused firms are fighting the allegations. These are Imperial Tobacco, which owns the Embassy, John Player and Golden Virginia brands, Tesco, Morrisons, Safeway (now taken over by Morrisons), the Co-op and Shell, for its petrol station stores. If they are found guilty of collusion they face serious penalties under the Competition Act.

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    ConocoPhillips reveals it has been subpoenaed in CFTC oil price fixing probe: What about Shell, the leader in illegal cartels?

    NEW YORK (Reuters) - ConocoPhillips said on Monday it was subpoenaed last December by the Commodity Futures Trading Commission as part of the agency's six-month investigation into manipulation of the oil market.

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    Texaco-Shell Case Headed to Supreme Court

    Convenience Store News: Texaco-Shell Case Headed to Supreme Court

    “…an appeals court ruling that said a Texaco-Shell joint venture was guilty of price fixing”

    Tuesday 4 October 2005

    WASHINGTON — As the Supreme Court opens up its new session, two major oil companies will be heading to Washington. The Supreme Court will hear the antitrust case, Texaco and Shell Oil v. Dagher, in which the Federal Trade Commission and Department of Justice’s antitrust division are asking the high court to overturn an appeals court ruling that said a Texaco-Shell joint venture was guilty of price fixing, according to CNN/Money .

    A federal district court in California originally threw out the case against the oil companies, saying that the venture, called Equilon, is one entity allowed to charge one price, according to CNN/Money . But the ruling was overturned by the 9th Circuit Court of Appeals in San Francisco in June 2004. Texaco and Shell, two of the nation’s biggest oil companies, appealed to the Supreme Court. read more

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    Minneapolis Star Tribune: Court to consider gasoline price-fixing case

    Minneapolis Star Tribune: Court to consider gasoline price-fixing case

    Associated Press

    June 27, 2005

    WASHINGTON — The Supreme Court said Monday it would consider whether to dismiss a lawsuit accusing ChevronTexaco Corp. and Shell Oil Co. of improperly inflating gas prices in the late 1990s.

    Justices will review a lower court ruling that allowed the class-action lawsuit by 23,000 gas station owners to proceed. The lawsuit accuses Shell and Texaco of setting up two joint ventures in 1998 to illegally fix gas prices.

    The San Francisco-based 9th U.S. Circuit of Appeals ruled the suit should go to trial because of evidence suggesting the venture unfairly restrained trade. read more

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    Royal Dutch Shell News Wednesday, 23 February 2005

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    Shell apologises for bitumen meetings in Brussels probe

    From Our October 2004 Shell News Archive

    Financial Times: Shell apologises for bitumen meetings in Brussels probe

    Royal Dutch/Shell said it regretted attending meetings with roadbuilders and bitumen suppliers. The apology came as it responded to charges from the European Commission of possible price-fixing in the Dutch bitumen market.”: Rein Willems, chairman of Shell in the Netherlands, said: “We are concerned about this matter. We should not have been in these meetings and we regret our involvement in this case.”

    By James Boxell

    Published: October 22 2004

    Royal Dutch/Shell said it regretted attending meetings with roadbuilders and bitumen suppliers. The apology came as it responded to charges from the European Commission of possible price-fixing in the Dutch bitumen market.

    Rein Willems, chairman of Shell in the Netherlands, said: “We are concerned about this matter. We should not have been in these meetings and we regret our involvement in this case.”

    The Anglo-Dutch energy group, which is seeking to restore its reputation after overbooking 23 per cent of its oil reserves, said it had received a “statement of objections” from the Commission, along with 13 other bitumen market participants. read more

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    Oil giants face price-fix charges

    The Scotsman: Oil giants face price-fix charges

    “Shell, which is being investigated in relation to its Dutch operations, said that the firm had been co-operating fully with the investigation, but has yet to be informed of any decision.”

    Alastair Reed

    Posted Oct 17, 2004

    EUROPEAN Union regulators are set to charge two global oil giants and a Dutch road builder with fixing the price of a petroleum product used to pave streets.

    Oil giants Exxon Mobil and Royal Dutch/Shell have both been under investigation by the European Commission as part of inquiries stretching back to 2002, along with road builders such as Ballast Nedam NV of the Netherlands. The investigation focused on the market for bitumen, a by-product from the crude oil refining process, which is primarily used in the construction industry for surfacing roads and waterproofing. read more

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