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A rogue trader has struck a London oil broker, costing the firm $10 million (£6.1 million), it emerged this afternoon.
The trader at PVM Oil Futures took unauthorised positions in the market on Tuesday that were so huge they artificially triggered a spike in the cost of crude worldwide.
The dealer's identity remained undisclosed, but dealers said the trades were probably made during the quiet overnight-early morning hours of Asian trading.
That was when both the London Brent and New York Nymex crude oil prices leaped by almost $2 a barrel to their highest point this year.
Such big moves caused some suspicion in the market, as they are unusual at that time of day.
PVM said in a statement that, when it had discovered it was so heavily exposed, it had sold off the positions “in orderly fashion”, resulting in a loss of $10 million. It refused to say if the trader had since left the company, citing “legal reasons”.
The Financial Services Authority and IntercontinentalExchange authorities have been informed.
