Us commodity regulators are examining suspicious trading in oil futures markets that occurred ahead of news that countries around the world would release crude from strategic stockpiles, according to a source.
The fact that oil prices dropped hours before the International Energy Agency announced a coordinated release of 60 million barrels of oil could indicate that some market participants got wind of the decision early, the person said.
Traders have also raised the possibility of a leak.
The CFTC is reviewing data to find clues as to whether some traders may have received an advance tip, the person said.
A CFTC spokesman declined to comment. The IEA couldn’t be reached.
The front-month oil futures contract on the New York Mercantile Exchange ended Wednesday at $95.41 a barrel, near the highs of the day, and then started losing ground, dropping 1.5 percent between 2:30 and 7:10 p.m.
Oil bumped along at just above $94 a barrel until about 3 a.m. on Thursday and then started falling again, losing another 1.5 percent by a little after 7 a.m.
The IEA said shortly after 8 a.m. that it would hold an “urgent” press conference, and the market immediately began speculating on an oil release, driving oil prices lower. The IEA confirmed it was releasing 60 million barrels of oil about an hour later, and Nymex crude eventually plunged below $90 a barrel at its lowest point.