CFTC adviser allegedly pressured staff to drop oil insider trading probe before Trump Iran reversal
Protos reports a CFTC senior adviser pressed a supervisor to retract an insider trading referral covering oil futures bets placed minutes before Trump withdrew threats to strike Iran.
Why it matters
If confirmed, the episode would indicate political interference in a derivatives market investigation and potential insider trading around a presidential policy reversal, raising questions about CFTC independence and market integrity.
Key facts
Mel Gunewardena, senior adviser to CFTC Chairman Michael Selig, allegedly told a CFTC supervisor to retract an oil futures insider trading referral
Reported by Protos
The referral covered oil bets placed minutes before Trump backed off threats to strike Iran's power plants on March 23
Reported by Protos
Traders sold over 6 million barrels worth of oil futures contracts immediately prior to Trump's reversal
6,000,000 barrelsReported by Protos
Paul Sankey stated either the administration leaks or somebody very close to the administration is insider trading
Reported by Protos
Tim Skirrow said either someone got very lucky or knew something about the trades
Reported by Protos
A Dallas Fed survey respondent wrote their hypothesis is the oil paper market is being manipulated
Reported by Protos
US Oil Fund ETF is up 151% year-to-date since before the war in Iran
151 %Reported by Protos
What happened
Protos reports that Bloomberg revealed Mel Gunewardena, a senior adviser to CFTC Chairman Michael Selig, told a CFTC supervisor to retract an oil futures insider trading referral. The referral covered trades placed minutes before Donald Trump backed off threats to strike Iran's power plants on March 23, a reversal that immediately moved oil prices and delivered a windfall to traders who had sold over 6 million barrels worth of oil futures contracts. Oil analyst Paul Sankey said either the administration leaks or someone very close to it is insider trading. Energy Aspects derivatives head Tim Skirrow stated either someone got very lucky or knew something. A Dallas Fed survey respondent wrote their hypothesis is the oil paper market is being manipulated. The US Oil Fund ETF is up 151% year-to-date since before the Iran war, though skeptics say it should be much higher.
How the story developed
- First report
First report by Protos
Did insiders short oil before Trump backed down on Iran?
- Update
Trump backs off threats to strike Iran's power plants
Presidential reversal on March 23 immediately impacted oil prices
- Update
Bloomberg breaks news of CFTC adviser intervening in insider trading investigation
Reports Mel Gunewardena pressed a CFTC supervisor to retract an oil futures insider trading referral
- Update
Protos publishes analysis of insider trading allegations
Summarizes expert reactions from Paul Sankey, Tim Skirrow, and Dallas Fed survey respondent
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Protos Crypto media | Did insiders short oil before Trump backed down on Iran? | Original |
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