However, his Department of Energy and Climate Change also acknowledged the impact of oil market rigging could be bigger than simply affecting petrol prices.
It said manipulation of the oil price could have driven inflation and pointed out that the market is an important benchmark for many financial transactions.
High oil prices also feeds through to bigger bills for food, clothes and other essentials because it pushes up the cost of transport and manufacturing.
A high oil price will also fuel inflation, which erodes the value of people\’s savings, and can stifle economic growth, by pushing up businesses\’ costs
As far as we know, at least, the investigation is into possible misreporting into some of the benchmarks. As with, perhaps, LIBOR. Tiny movements this way or the other in order to influence futures contracts based on the benchmarks.
Here we\’ve got DECC coming out full bore and telling us that it might actually be the level of prices that\’s at issue Inflation, food prices, the lot. A certain amount of FUD being spread there I think.
At least I hope that it\’s malevolence. God forbid that they\’re actually stupid enough to think that a few fuel traders have enough market clout to actually alter the price of oil in any substantial manner. Don\’t they know how large the damn market is?