CFTC investigating U.S. crude oil trading

WASHINGTON, May 29 (UPI) -- U.S. regulators in Washington confirmed Thursday they have been conducting an investigation into possible price manipulation in the red-hot crude oil markets.

The Commodity Futures Trading Commission (CFTC) said in a written statement that its enforcement division had launched the probe in December and covered a wide range of activities, including storage, transportation, and "trading of crude oil and related derivative contracts."

The CFTC declined to discuss specifics of the investigation, but said all of its enforcement actions were aimed at curbing market manipulation. It added that it was announcing the investigation "because of today's unprecedented market conditions."

Speculative pressure has been frequently blamed for the ongoing bull oil market, which has pushed gasoline prices past the $4 per gallon mark in many areas of the country.

The CFTC Thursday also announced it was taking steps to improve the transparency of the complex energy futures markets. The steps include monitoring the trading of U.S. futures traded on overseas exchanges, and requiring traders to submit more detailed data regarding their index trading activities.