The Financial Services Authority, the UK market regulator, has called a special meeting with major oil companies, banks, hedge funds and oil brokers to review regulation in the oil and commodity market.
The meeting, scheduled for August 5, comes as US regulator have said that they intend to clamp down on financial flows into the oil and other commodities markets. The Commodity Futures Trading Commission is currently holding hearings about possible changes to position limits.
Apparently the reason for the spike in oil prices earlier this month was due to rogue trading.
The meeting organised by the FSA follows an episode of rogue trading earlier this month at PVM, the London-based oil brokerage, which triggered losses of $10m for the company and pushed oil prices to their highest level this year at $73.50 a barrel.
WTI Cushing Spot price is trading around 64 as I write this. It was down under 60 a couple of weeks ago.
OPEC has said they want the oil prices around 65 a barrel, or they would cut production, so perhaps that is the magic number.
I thought oil would fall down to around 55, but so far that hasn't happened.