Shares in the oil giants fell in early trading on Wednesday after European regulators began an investigation into whether the companies may have manipulated the price of oil for more than a decade. Shell was down 1.7pc, while BP fell 0.2pc.
The Commission said that on Tuesday it had raided the offices of “several companies active in and providing services to the crude oil, refined oil products and biofuels sectors”.
BP, Shell, Statoil and price-reporting agency Platts all confirmed they were co-operating with the EC investigation.
Statoil said the suspected violations “related to the Platts’ Market-On-Close (MOC) price assessment process” and “may have been on-going since 2002”.
In a statement, the EC said: “The Commission has concerns that the companies may have colluded in reporting distorted prices to a Price Reporting Agency to manipulate the published prices for a number of oil and biofuel products.
“Furthermore, the Commission has concerns that the 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.”
It said that the price reported by agencies “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.”
It said the raids were a “preliminary step to investigate suspected anticompetitive practices” and “does not mean that the companies are guilty of anti-competitive behaviour nor does it prejudge the outcome of the investigation itself”.
A BP spokesman said: “BP is one of the companies that is subject to an investigation that was announced earlier today by the European Commission. We are cooperating fully with the investigation and unable to comment further at this time.”
A Shell spokesman said: “We can confirm that Shell companies are currently assisting the European Commission in an enquiry into Trading activities. We are fully cooperating with the investigation. For legal reasons we cannot make any further comment at this stage”.
Platts said it “confirms that the European Commission has undertaken a review at its premises in London this morning in relation to the Platts price assessment process. Platts is cooperating fully with the European Commission's review”.
Statoil also confirmed in a statement on its website that its Norwegian offices had been inspected.
Source: telegraph.co.uk
Author: Emily Gosden
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