Anorak | The elite are manipulating petrol prices

The elite are manipulating petrol prices

by | 19th, May 2013

AFTER the inquiry into the crud oil prices is announced we’ve got the AA leaping in and insisting that there’s another group conspiring and manipulating to make the petrol made from crude more expensive .

Few of the traders’ names – including Glencore, Cargill, Gunvor and Trafigura – are known to consumers outside the oil industry, but their effect on Britain’s 33million motorists and the wider economy is profound.

They buy huge quantities of petroleum on the open market and store it until the price goes high enough to make them a handsome profit, at which point they sell.

There’s a slight problem with this sort of story. It assumes that these manipulators know that the price is going to rise in advance. That’s why they buy and store of course, because they know. And it’s not really possible to know that prices are going to rise: so there’s got to be something odd about the story itself.
So let’s think about what that might be. There’s a group of people out there who buy up lots of petrol from the refineries. They hang on to it for some amount of time and then they ship it on, in smaller amounts per sale

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Posted: 19th, May 2013 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink

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