Rogue Trader Causes Oil Spike
From The Financial Times:
‘Rogue broker’ blamed for oil spike
By Javier Blas and Izabella Kaminska in London
Financial Times
Published: July 2 2009 12:07 | Last updated: July 2 2009 20:26
The startling spike in oil prices to their highest level this year on Tuesday was caused by a rogue broker who placed a massive bet in the Brent oil market, triggering almost $10m (7m euros) of losses for his company.
PVM Oil Associates, the world’s largest over-the-counter oil brokerage, said on Thursday it had been the “victim of unauthorised trading”. The privately owned company said that as a result of the unauthorised trades it had been forced to close substantial volumes of futures contracts at a loss.
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