28. Rockefeller created the oil futures market through price manipulation
In the 1880s Standard Oil began to control pricing of oil by raising or lowering storage prices for oil in its reservoirs and pipelines. On Rockefeller’s orders, certificates of value against the oil stored in Standard’s pipelines were issued, and were soon traded by brokers and speculators. The oil certificates were the first oil futures to be traded, and since the innovation was established they have been the source of oil market prices. By late 1882 oil futures were traded on the National Petroleum Exchange in New York, which had by then been established as the business center of the United States. Standard Oil, through its dominance of the market, was able to set oil prices well into the future, based on changing markets, ensuring their continuing profitability.