Brent broker PVM Oil Futures suffers $10m loss on rogue trades

02 July 2009 13:11  [Source: ICIS news]

LONDON (ICIS news)--Independent oil broker PVM Oil Futures Ltd suffered a loss of just under $10m due to unauthorised trading on 30 June, the company said in a statement on Thursday.

The trades are believed to have caused a spike in ICE Brent futures in the early hours of trading in Asia two days ago, media reports suggested.

The ICE Brent futures price on 30 June opened at $71.30/bbl and gained sharply to hit a high of $73.50/bbl, up $2.51/bbl from the previous close. By the time London activity had picked up, the price had dropped back to $72.60/bbl.

By midday in London on 30 June, prices were close to $70.00/bbl.

PVM said that due to a series of unauthorised trades, it held a substantial volume of futures contracts at the time, which were then closed.

“When this was discovered, the positions were closed in an orderly fashion,” the company said. “PVM suffered a loss totalling a little under $10m.”

PVM said it was conducting a full investigation into the unauthorised trading activity.

PVM Oil Futures Ltd is one of the largest brokers on the Brent market.  

To discuss issues facing the chemical industry go to ICIS connect


By: Giovanni Coiro
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly