The price of oil has surged recently on talks of production restrictions by OPEC and Russia:
At the Schroders conference in Lisbon in September, someone made a very interesting remark: “if the OPEC guys actually thought they could pull off production cuts, the price of Brent would be up through $60 on insider trading…” I had never quite thought of that ‘insider trading’ dynamic, but it makes sense:
1) An OPEC minister or a proxy calls his broker in London
2) Buys oil futures
3) Broker gets the hint, piggybacks on the trade.
4) This starts happening at a number of London brokers
5) Oil price gets driven up on evident insider trading