(Rewrites throughout with details and quotes)
WASHINGTON, June 10 The U.S. Commodity Futures
Trading Commission has reached an agreement in principle to
settle its oil manipulation case against Arcadia Petroleum and
Parnon Energy, taking a step closer to ending a high-profile,
The deal, coming almost three months after both sides
entered mediation talks to settle the litigation, would prevent
one of the most high-profile oil manipulation cases going to
The U.S. commodities derivatives regulator sued two
well-known traders, James Dyer of Parnon Energy and Nick
Wildgoose of Arcadia, and their firms with allegations they made
$50 million by squeezing markets in 2008.
Details of the settlement were not available as both sides
hammer out details, a joint letter from the commodity
derivatives regulator and the defendants said.
"The parties need additional time to finalize the language
of a proposed settlement agreement and to seek the approval of
the full Commission to file the proposed settlement agreement
with the Court," said the letter, which was filed with the
federal court in Manhattan on Monday.
The letter asked for a judge to push back a scheduling until
Arcadia and Parnon, which are owned by Norwegian billionaire
John Fredriksen, have denied the charges, and have
unsuccessfully sought to dismiss the cases.
(Reporting by Douwe Miedema in Washington D.C. and Josephine
Mason in New York; Editing by Grant McCool)