Trump's Oil Deal Creates Suspicions of Insider Trading
US President Donald Trump announced an oil deal on Friday evening that granted the US control over a majority stake in more than 65 billion barrels of Venezuela's proven oil reserves. The agreement was touted as the 'largest oil deal in history' and claimed to increase US oil supplies while sharply lowering gasoline prices.
However, critics argue that the announcement created an informational advantage for those who knew about it beforehand. With the main futures market closing on Friday afternoons, a select few could have profited from falling crude prices by buying options or futures before the weekend.
The oil market is particularly vulnerable to this kind of insider trading, as announcements can move markets without necessarily changing actual oil supplies today. Even if Trump's deal doesn't produce significant increases in production immediately, financial markets trade on expectations.