FTC braced to fight oil price manipulation

[August 07, 2009]  WASHINGTON (AP) -- The Federal Trade Commission has issued a final regulation to curb price manipulation in oil trading markets.

The regulation announced Thursday prohibits oil traders from making false or misleading statements about oil prices, petroleum production or oil market statistics that would likely distort the market. The new rule, which will go into effect in November, implements tougher oil price manipulation requirements passed by Congress in 2007.

FTC Chairman Jon Leibowitz said in a statement that the new rule will allow the agency to crack down on fraud in the oil markets that can drive up prices at the pump. The regulation carries a civil penalty of up to $1 million per violation, per day. It was approved by a vote of 3-1.

[Associated Press; By H. JOSEF HEBERT]

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