The boss of Steve Perkins, the broker at the heart of a rogue trading scandal that rocked oil markets this week, issued a bullish report suggesting prices could go higher only hours after Mr Perkins made the unauthorised trades that caused prices to spike.

The disclosure raises further questions about internal controls at PVM Oil Associates, the world’s largest oil brokerage. The London-based firm, which revealed on Thursday it had lost $10m (€7.1m, £6.1m) as a result of trades by Mr Perkins, one of its senior brokers, said the trading report was sent to clients at 08.44 in London on Tuesday, and it did not discover the rogue trading until 10.10 that morning.

In a widely read daily note, the brokerage told clients: “There’s some serious upside momentum building.” It added that “the upshot of all this is that higher numbers are likely, and we are already approaching recent highs on the crudes, which are the initial targets for this next leg higher”.

Mr Perkins traded in the Brent futures market from his home using an internet-based access to the exchange at about 02.00 in the morning, one of the most illiquid times of the trading day. He amassed a huge position in Brent futures that pushed prices to $73.5 a barrel, the highest price so far this year.

The author of the report, Robin Bieber, is managing director of PVM’s oil futures arm, where the unauthorised trading took place. Mr Bieber is widely respected in the City as he accurately predicted last year the peak in oil prices at $147 a barrel.

PVM said on Friday that it was “unaware when the daily report was sent of the positions [taken by Mr Perkins]”. The company added that the note was its regular daily report and that none of its brokers was allowed to trade on personal accounts.

Nonetheless, PVM did not withdraw its daily note after discovering the rogue trading, although the Financial Times understands that the company did later inform some of its clients about the incident.

It only told the wider oil market of the unauthorised trading two days later, when many traders were already aware of the incident.

Copyright The Financial Times Limited 2009 – Financial Times