CFTC investigates $7 billion in suspicious short oil bets
Updated
Updated · OilPrice.com · May 8
CFTC investigates $7 billion in suspicious short oil bets
12 articles · Updated · OilPrice.com · May 8
The trades were made in March and April on ICE and CME contracts, including Brent, WTI, gasoline and diesel, shortly before President Donald Trump statements that pushed prices lower.
Reuters said the total has risen from earlier estimates of $2.6 billion, spanning trades before a delayed strike on Iranian infrastructure, a ceasefire announcement and later Strait of Hormuz negotiations.
One April 21 bet was reportedly worth $430 million and preceded an Iran ceasefire extension that sent Brent below $97 from above $100; the White House cited ethics rules on non-public information.
Beyond the traders, could a high-level government leak be the true source of the $7 billion oil windfall?
Can regulators prove the $7 billion oil bets were illegal trades and not just incredibly lucky guesses?
Does this probe reveal a systemic failure to protect markets from insider trading based on government secrets?