Oil Price Jump on Tuesday was thanks to Rogue Trades?

We even reported the jump in oil prices on Tuesday.  We thought it was mainly down to the Nigerian militia attacks, and sure enough the situation in Nigeria is being linked to the push up in oil prices.  However….

…..it turns out that the sudden jump in the price of a barrel on Tuesday was mainly down to a man called Steve Perkins.  The man, who works (or should we say worked) at London oil broker PVM carried out a series of rogue trades which caused the oil price to jump sharply.

By the time the contracts (which were Futures) were sold, the price had fallen…meaning PVM lost a total of $10 million.  The incident is being investigated fully by the FSA.

What really makes this story intriguing is that Steve decided to make the trades at around 2AM London time.  At 2AM most people are fast asleep (well on average on a Tuesday) and trading is generally very thin.  Therefore, the system the company has in place to detect oddities was able to easily point back the trades, which all came from one source,  to him.

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