
US watchdog wants London to tighten oil market rules
Robin Pagnamenta
News and information on Royal Dutch Shell Plc
Robin Pagnamenta
American regulators are heading for a direct confrontation with the Financial Services Authority (FSA) after trying to slap new trading restrictions on the London oil market without the approval of the British watchdog.
The Commodity Futures Trading Commission announced new disclosure requirements yesterday for trading in West Texas Intermediate (WTI) oil futures contracts on the City’s ICE Europe exchange, which controls 30 per cent of the global market. A spokesman for the FSA said that the step had been taken without its approval and ICE Europe said that it would agree to the CFTC’s request only subject to FSA acceptance.
The move comes as London’s oil market has met mounting fire from a powerful clique of US senators, who blame speculative activity in the Square Mile as a key factor driving global crude prices to their existing levels of nearly $140 a barrel.
In a speech to Congress last week, Senator Dianne Feinstein, of California, portrayed the UK regulator as ineffectual and understaffed. The British only have 80 people monitoring market abuses, she said.
Not one of these 80 people is specifically assigned to monitor trading of West Texas Intermediate, American Gasoline or New England Heating Oil. This may explain why the CFTC tells me that British regulators are yet to bring a single manipulation case against traders in any contracts for US delivery.
The CFTC has been pressing the FSA to introduce US-style daily limits on WTI, heating oil and US gasoline contracts bought and sold by traders using ICE Europe by capping the number of contracts that traders can hold.
The proposals, which could come into effect within three months, are intended to stop traders from evading position limits in the United States by trading on ICE Europe – the so-called London loophole. However, the FSA believes that only the market should determine the price.
The watchdog, which has the power to veto the decision, said that it was still in talks with the CFTC. We will need to consult with the market and then decide, a spokesman said.
Posted in: Oil Prices, The Times.
Tagged: FSA · Oil Prices
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EBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.
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Bonus Group: It is not clear why the once upon a time VP Developments, Brazil is now VP Subsurface Excellence, given that the Brazil Asset under her stewardship spent at least five years down a giant rabbit hole using a corrupt workflow that resulted in a significant overbooking of reserves.
Bonus Group: On this day in 2016 the fate of BG Group, an Internet Cafe and Cappuccino Lifestyle company was sealed. See: https://www.shell.com/about-us/what-we-do/combining-shell-and-bg-a-simpler-and-more-profitable-company.html https://www.theguardian.com/business/2016/jan/28/35bn-shell-takeover-approved-bg-shareholders
Bonus Group: John,
Re:Links between Samuel Iskander and corruption
Dave Freeman currently Chief Operating Officer at privately owned Tailwind Energy and previously Upstream Technical Director (COO Office) at BG Group should be able to answer your question.
REPLY BY JOHN:
Many thanks, I will pass that information on to the investigative contact.
John Donovan: POSTED ON BEHALF OF AN INVESTIGATIVE CONTACT:
Newly former Shell executive Sami Iskander has been appointed CEO to London-traded energy company Petrofac, which is facing corruption allegations in Italy and from the U.K.'s SFO. The question is whether Iskander, who was one of only four executives from British Gas retained by Shell when the two merged in 2015, brings any baggage with him?
In general, what kind of a reputation does this man have in the London energy business community?
Bonus Group: Further to Bogus Group's post below, see: https://amp.theguardian.com/politics/2021/feb/02/sir-simon-robey-the-accidental-banker-adding-george-osborne-to-the-fold
Bogus Group: https://www.dailymail.co.uk/news/article-9211393/George-Osborne-lands-new-job-quits-roles-Evening-Standard-BlackRock.html The revolving door is still in motion. Links to Robey Warshaw, BG Group advisor on Shell deal, links to the “Notting Hill Set”, links to politicians, links to the authoress of “The Gatekeeper”, links to Brunswick, Shell/BG Group PR company, links to BlackRock….and others.
Bonus Group: https://www.aljazeera.com/amp/news/2021/1/29/dutch-court-orders-shell-to-pay-nigerian-farmers-over-oil-spills
Bonus Group: The long overdue structural reorganisation at Shell is rapidly approaching. No better place to start than within the Brazil Asset which has been propped-up for over ten years now by the same BG Group sycophants who have a proven track record of overbooking reserves on the basis of flawed functionall approved technical workflows. These individuals are still clinging desperately to their positions five years after the takeover of BG Group by Shell. Can it be that Shell cannot afford to move them on lest their poor work and lies be revealed? Get rid of them, truth and transparency are now required if not demanded in the Brasil Asset!
Bogus Group: More BG Group (Shell) executive 'turmoil'. Just love the "stepping down with immediate effect for personal reasons" euphemism.
Bogus Group: 330 job cuts in Aberdeen, with the new rhetoric by a Shell 'spokesperson', "this intends to ensure we are set up to thrive throughout the energy transition and be a simpler organisation". https://www.upstreamonline.com/exploration/330-job-cuts-oil-giant-shell-lays-out-losses-to-uk-team/2-1-942991
PRELUDE WHITE ELEPHANT: Shell has not revealed the cost of Prelude but analysts estimate the price tag has ballooned to as much as A$17bn ($13bn). The Anglo-Dutch company reported $9bn in impairment charges on its Australian gas assets in the second and third quarters of 2020. https://www.ft.com/content/6ba54787-6d21-48d2-93b2-273cdcf48455
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