Regulation of Oil Markets: Current Reforms and Implications

摘要

The debate about the post-financial crisis regulation of oil derivatives markets and its impact on the price formation process is strongly linked to the long-running discussion on speculation versus fundamentals and the nature and functioning of the current international oil pricing system. Identifying the inter-linkages between the financial and physical layers of this system is important, not only for understanding what determines the spot price of crude oil, but, crucially, also for devising an international regulatory framework that can improve the functioning of oil markets and pricing mechanisms.