Home › Forums › Refining Community › Refinery News › EU Price Fixing BP/Shell/Statoil via Platts -Expand US? › Re:EU Price Fixing BP/Shell/Statoil via Platts -Expand US?
Here is update on EU price fixing by 3 majors BP/Shell/Statoil using the Platts MOC system to rig oil (Brent) & product prices. Good example of how using low level analysts & programs to establish prices can be manipulated by traders & experts that actually understand the market. Platts may take major hit but if they are looking at Argus to pick up some of its share market – they are only changing names & not gaining any more expertise.
US has few of same problems as the EU high price of Index Crude (Brent), high price of gas ($7-9/gal) and collapse of EU refining sector/closing plants due lack of complexity/expensive emission cost/competition from cheap Govt exporters who subsidize fuels and EU has about 60-80% price gas tied up as taxes which was reason prices didn’t always change dramatically with cost of goods/services (COGS). But our crude index (WTI) has been $8-25/bbl below Brent due glut/lack infrastructure, and US gas is only $3-4/gal (ranks ~56 out top 60 global price list) and taxes are “only 25-40%” of gas price (visible 12-17% at pump). But once fixers get away free gain they will try it anywhere besides whiners always want oil company to be “boogey man” gouging them due greed (only partly correct – stupidity on impact environmental regulations, permit blockage, NIMBY “someone else pay for it”).
Keep eyes on US East & West Coast where EU template is being followed & Refining US is collapsing/closing fastest.
FYI Some other versions :
EU Prime Minster David Cameron @ NY http://www.guardian.co.uk/business/2013/may/16/oil-price-fixing-criminal
EU probes Oil Co/Platts Price Fixing http://news.yahoo.com/eu-probes-oil-companies-possible-170537240.html