Former BP trader fined in NYMEX mogas trading

WASHINGTON (Reuters) - Former BP trader Paul K. Kelly will pay a $400,000 (195,000 pound) civil penalty for attempting to manipulate unleaded gasoline futures contracts listed at the New York Mercantile Exchange, the U.S. Commodity Futures Trading Commission said on Thursday.

The agency charged Kelly with trying to manipulate the price spread between the November and December 2002 NYMEX gasoline futures on the last day of trading for the November contract.

The CFTC said unleaded gasoline was in short supply in October and early November 2002 and Kelly was aware of the shortage.

Despite the fact that BP held 1,352 November 2002 gasoline contracts -- more than its stated commercial need of 1,300 contracts -- Kelly bought an additional 720 contracts to try to affect the price spread between the November and December futures, the agency said.

The agency's enforcement action came on the same day that BP agreed to pay $303 million to settle charges it manipulated the U.S. propane market.