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Glencore’s Oil-Price Rigging Puts Spotlight Back on Benchmarks

  • Price-reporting agencies value much of the world’s commodities
  • Glencore pleaded guilty to manipulating fuel-oil prices
relates to Glencore’s Oil-Price Rigging Puts Spotlight Back on Benchmarks
Photographer: Sergio Flores/Bloomberg

Glencore Plc’s settlement with US prosecutors has cast fresh light on manipulation of an under-the-radar part of the commodities world that’s crucial for valuing physical deals and derivatives.

The raw-materials giant this week agreed to plead guilty to rigging fuel-oil assessment prices after probes into wide-ranging bribery and corruption. The process for setting the benchmarks involves price reporters polling traders in the market for bids, offers and transactions so that they can publish values on products that otherwise would remain private information.