This would help to explain those high gas prices.
Late Monday, federal regulators announced an investigation into whether oil companies and refiners have manipulated markets, raising oil prices to their benefit, according to a letter released by the Federal Trade Commission to the Senate yesterday and cited by The Hill.
The Federal Trade Commission plans to investigate why some oil refineries were shut down for maintenance, which can lead to higher oil prices, according to The Wall Street Journal. It is also investigating whether refiners engaged in other anti-competitive practices or provided misleading information to federal officials, the FTC letter said.
The FTC has authorized the use of compulsory process to demand records from oil refineries, according to McClatchy Newspapers. Under law, the FTC can impose penalties on companies that manipulate the price of oil, The Washington Post reported yesterday.
The news comes at a time of great prosperity for oil refiners. Profit margins of U.S. refiners have nearly doubled since the beginning of 2011, even though refiners have been using only 81.7 percent of their capacity: a seven percent reduction from the same period in 2010, according to yesterday's FTC letter.
Market manipulation, if real, would be making a bad situation only worse for consumers. U.S. oil prices have risen to nearly $115 per barrel this year, according to The Wall Street Journal. That's a 47 percent increase from oil prices last year, as the oil price in June of last year hovered around $78 per barrel, according to CNN.
Full Article
Source: Hiffington
Late Monday, federal regulators announced an investigation into whether oil companies and refiners have manipulated markets, raising oil prices to their benefit, according to a letter released by the Federal Trade Commission to the Senate yesterday and cited by The Hill.
The Federal Trade Commission plans to investigate why some oil refineries were shut down for maintenance, which can lead to higher oil prices, according to The Wall Street Journal. It is also investigating whether refiners engaged in other anti-competitive practices or provided misleading information to federal officials, the FTC letter said.
The FTC has authorized the use of compulsory process to demand records from oil refineries, according to McClatchy Newspapers. Under law, the FTC can impose penalties on companies that manipulate the price of oil, The Washington Post reported yesterday.
The news comes at a time of great prosperity for oil refiners. Profit margins of U.S. refiners have nearly doubled since the beginning of 2011, even though refiners have been using only 81.7 percent of their capacity: a seven percent reduction from the same period in 2010, according to yesterday's FTC letter.
Market manipulation, if real, would be making a bad situation only worse for consumers. U.S. oil prices have risen to nearly $115 per barrel this year, according to The Wall Street Journal. That's a 47 percent increase from oil prices last year, as the oil price in June of last year hovered around $78 per barrel, according to CNN.
Full Article
Source: Hiffington
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