BP, Shell, Others Free of Crude Oil Commodities Fraud Suit

A group of North Sea oil futures and derivatives traders can’t revive their commodities fraud suit against BP, Shell, and other oil firms, the Second Circuit held Aug. 29.

The traders accused the oil firms of manipulating foreign markets for North Sea crude oil, also known as Brent crude, which affected global commodities markets. But federal commodities law doesn’t permit U.S. suits for conduct that allegedly occurred in Europe, the U.S. Court of Appeals for the Second Circuit said.

There’s a presumption that federal laws don’t apply outside the U.S. unless their text expressly says so or the suit involves ...