European
commission carries out 'unannounced inspections' to investigate claims oil
companies colluded to manipulate prices
guardian.co.uk,
Rupert Neate, Tuesday 14 May 2013
BP, Shell and other big oil companies have been raided by European commission officials investigating allegations they "colluded" to rig oil prices.
The suspected violations – related to the Platts’ price assessment process – may have been going on since 2002. Photograph: Eric Piermont/AFP/ Getty Images |
BP, Shell and other big oil companies have been raided by European commission officials investigating allegations they "colluded" to rig oil prices.
The
commission said its officers carried out "unannounced inspections" at
several oil companies in London, the Netherlands and Norway on Tuesday to
investigate claims they may have "colluded in reporting distorted prices
to a price reporting agency (PRA) to manipulate the published prices for a
number of oil and biofuel products".
The commission said the alleged price collusion, which may have been going on for
more than a decade, could have had a "huge impact" on the price of
crude oil, "potentially harming final consumers".
EU
authorities declined to name any of the companies raided but BP, Shell,
Norway's Statoil and oil price reporting agency Platts all confirmed that they
are being investigated.
In a
statement Shell said: "We can confirm that Shell companies are currently
assisting the European commission in an inquiry into trading activities."
BP said:
"BP is one of the companies that is subject to an investigation that was
announced by the European commission. We are co-operating fully with the
investigation and unable to comment further at this time."
Statoil,
which is 67%-owned by the Norwegian government, said: "The authorities
suspect participation by several companies, including Statoil, in
anti-competitive agreements and/or concerted practices contrary to Article 53 of the European Economic Area (EEA) [market manipulation].
"The
suspected violations are related to the Platts' Market-On-Close (MOC) price
assessment process, used to report prices in particular for crude oil, refined
oil products and biofuels, and may have been ongoing since 2002."
The
commission also said that Europe's big oil companies may have "prevented
others from participating in the price assessment process, with a view to
distorting published prices.
"Any
such behaviour, if established, may amount to violations of European antitrust
rules that prohibit cartels and restrictive business practices and abuses of a
dominant market position.
"The
prices assessed and published by PRAs serve as benchmarks for trade in the
physical and financial derivative markets for a number of commodity products in
Europe and globally. Even small distortions of assessed prices may have a huge
impact on the prices of crude oil, refined oil products and biofuels purchases
and sales, potentially harming final consumers."
The raids
come less than a year after the Guardian revealed that the City watchdog, the Financial Services Authority, was investigating claims big energy companies had been regularly manipulating the wholesale price of gas.
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