Article: Big Oil’s Secret World of Trading

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Big Oil’s Secret World of Trading

Javier Blas and Jack Farchy, 30 March 2021

It was a bleak moment for the oil industry. U.S. shale companies were failing by the dozen. Petrostates were on the brink of bankruptcy. Texas roughnecks and Kuwaiti princes alike had watched helplessly for months as the commodity that was their lifeblood tumbled to prices that had until recently seemed unthinkable. Below $50 a barrel, then below $40, then below $30.

But inside the central London headquarters of one of the world’s largest oil companies, there was an air of calm. It was January 2016. Bob Dudley had been at the helm of BP Plc for six years. He ought to have had as much reason to panic as anyone in the rest of his industry. The unflashy American had been predicting lower prices for months. He was being proved right, though that was hardly a reason to celebrate. Continue reading “Article: Big Oil’s Secret World of Trading”

Article: Former Glencore oil trader pleads guilty to market manipulation charges

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Former Glencore oil trader pleads guilty to market manipulation charges

Chris Prentice,  29 March 2021

A former Glencore Plc fuel oil trader pleaded guilty and agreed to pay $100,000 to settle charges of market manipulation of a key U.S. pricing benchmark, U.S. authorities said on Thursday.

Emilio José Heredia Collado admitted to a multiyear conspiracy to manipulate the fuel oil market, the U.S. Department of Justice said. Heredia agreed to a lifetime ban and a civil penalty of $100,000 to settle parallel charges filed by the U.S. Commodity Futures Trading Commission.

From as early as June 2012 to at least August 2016, Heredia and others at Glencore sought to boost their profits from oil trading by manipulating prices, U.S. officials said.

A Glencore spokesperson said the firm is cooperating with the ongoing investigation.

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Article: Ex-Glencore Trader Pleads Guilty to Manipulating Oil Prices

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Ex-Glencore Trader Pleads Guilty to Manipulating Oil Prices

Joel Rosenblatt, Malathi Nayak and Javier Blas, 25 March 2021

(Bloomberg) — A former Glencore Plc trader pleaded guilty to manipulating an oil price benchmark, allowing the world’s largest commodities trader to profit from the price swings and enriching himself.Emilio Heredia appeared by video conference on Wednesday in federal court in San Francisco and admitted to a conspiracy in which he directed buy and sell orders that pushed fuel oil prices up and down.

Heredia, 49, faces a maximum sentence of five years in prison and a $250,000 fine. Justice Department lawyer Matthew Sullivan told the judge that Heredia, who became a naturalized citizen in 2016, could lose his immigration status and be removed from the U.S. But Sullivan also said Heredia had agreed to cooperate with the government as it investigates further.

Glencore has said it is cooperating with authorities. Continue reading “Article: Ex-Glencore Trader Pleads Guilty to Manipulating Oil Prices”

Article: Former Glencore trader charged in global oil price manipulation scam

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Former Glencore trader charged in global oil price manipulation scam

THOMAS BIESHEUVEL AND JAVIER BLAS, 23 March 2021

(Bloomberg) –A former Glencore Plc trader was charged by U.S. authorities with conspiracy to manipulate a key oil price benchmark, the latest sign that prosecutors around the world are stepping up their scrutiny of the notoriously opaque commodity trading industry.

U.S. prosecutors alleged that Emilio Heredia, a former Glencore employee, directed buy and sell orders that would push fuel oil prices up and down. That allowed the companies he worked for to profit from the price swings, between 2012 and 2016, according to a filing at a U.S. District Court in San Francisco on March 15.

The investigation is the latest legal setback for Glencore, already embroiled in a wide-ranging probe by the U.S. Department of Justice on allegations of bribery and money laundering. The UK, Swiss and Brazilian authorities are also investigating the commodity trader. Continue reading “Article: Former Glencore trader charged in global oil price manipulation scam”