UPDATE 1-U.S. probes BP for gas market manipulation

Wed Feb 2, 2011 1:28am EST

* CFTC recommends charges, FERC mulls whether to proceed

* BP denies manipulated market

LONDON, Feb 2 (Reuters) - BP (BP.L) said U.S. regulators were considering filing charges against it related to alleged manipulation of the gas market.

"The U.S. Federal Energy Regulatory Commission (FERC) and the U.S. Commodity Futures Trading Commission (CFTC) are currently investigating several BP entities regarding trading in the next-day natural gas market at Houston Ship Channel during October and November 2008," BP said on Wednesday.

The FERC's enforcing body is now mulling whether to pursue charges against BP, which was prosecuted on propane market manipulation charges in 2006. BP paid around $300 million to settle those charges.

The news comes as BP is struggling to rebuild its business and reputation in the United States after causing the U.S.'s worst-ever oil spill last year in the Gulf of Mexico. (Reporting by Tom Bergin; Editing by Dan Lalor)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.