Oil Futures and Price Manipulation
Standard Oil started controlling the price of oil in the 1880s, by raising or lowering storage prices for oil in its pipelines and reservoirs. Certificates of value against the oil stored in Standard pipelines were issued under Rockefeller’s command and were traded by brokers and investors. These certificates were the first oil futures to be traded (kind of like stocks). It has been the source of oil market prices since the innovation was established.
John D. Rockefeller Jr. and Abby Aldrich in an experimental electric car on July 4th, 1943. Photo by Everett Collection / Shutterstock
Oil futures were traded on the National Petroleum Exchange in New York by late 1882. At that point, the Exchange was established as the business center of the United States. Through its dominance of the market, Standard Oil was able to set oil prices well into the future based on changing markets. This ensured their continuous profitability.