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.  

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By: Giovanni Coiro
+44 20 8652 3214

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