EU oil pricing probe spurs lawsuit against BP, others
Prime International Trading has filed a proposed class-action lawsuit against BP, Royal Dutch Shell and Statoil
A Chicago-based commodities trading firm has filed suit against three of the world’s largest oil companies, accusing them of colluding to fix oil prices after European authorities opened an investigation last week.
Prime International Trading, which trades crude oil and other commodities, filed the proposed class-action lawsuit against BP, Royal Dutch Shell and Statoil this week, accusing the firms of misreporting trades in North Sea Brent, the oil benchmark which sets the price of about 70 per cent of the world’s crude.
The lawsuit is seeking civil damages on the heels of a European Commission probe into the reporting of false prices to price-setting agency Platts, a unit of McGraw-Hill.
Platts’ information is used to price oil contracts, including Brent.
None of the oil companies responded to phone calls and emails seeking comment on the lawsuit.
No charges have yet been brought by European authorities, and the oil companies have said they are cooperating with the investigation. Statoil said last week the suspected violations may have been ongoing since 2002.
“If it is found there was wrongdoing by the oil companies, the class-action suit would almost certainly significantly drive up the cost of any settlement,” said Craig Pirrong, a University of Houston professor of finance and a commodities expert.
