Regulators probe whether energy market players are injecting false crude oil supply data into market

[DogPoundPup]

(Reuters) - Commodity market regulators are probing whether energy market players are injecting false crude oil supply data into the marketplace, the Wall Street Journal said.

Regulators are concerned that companies may be reporting inventory levels that benefit their own trading positions but may not be accurate, the paper said, citing people familiar with the probe.

Unexpected drops in oil inventories reported each Wednesday by the U.S. Energy Information Administration can spark price spikes on the main oil futures benchmark on the New York Mercantile Exchange.

The report noted a company could theoretically underreport barrels in its tanks to suggest oil is scarcer than it really is, and then sell its physical oil at a premium when oil prices jump on misleading news.
MORE: http://news.yahoo.com/s/nm/cftc_dc;_ylt=AteedEmSA8Uxb1UiiIVjAmcDW7oF

[Gman]

1. Duh! Ya think...?

and they would do it knowing full well that the Bush administration would wink and nod it.

[jpak]

2. K&R

n/t

[crickets]

3. Yikes.

Yet not surprising.

[Festivito]

4. Did buyers catch on, thus explaining the 2-month-ago spike.

They quit buying it back then. Now the regulators get it.

Just wondering.

Could not explain it before.

[unblock]

5. now THAT would explain the price movements, not this "speculator" nonsense

trying to manipulating prices by "speculating" is a bit like trying to move a wave with a surfboard.
speculators make money by identifying the wave early and riding it.

but manipulating supply data would CREATE a wave as the entire market respond to the false data.