Reuters reported that tighter regulation should be imposed on trade in oil based financial instruments to curb volatility in oil prices.

Mr Abdullah al Badri secretary general of OPEC said that swings in oil prices have been exacerbated by the private over the counter derivatives market which often exerts greater power than underlying oil supply and demand, he told the paper.

Mr Badri said that when we see this swing of 8, 9, 10 dollars, it concerns us it really concerns us. We cannot avoid volatility it will be there but it should be in a reasonable range. I'm not asking to eliminate this OTC business what I am saying is let us have adequate regulation. He participated in a 2 day meeting of energy officials this week in London to discuss the links between the physical and financial markets for energy and the regulatory framework.

As well as the Organization of the Petroleum Exporting Countries, the International Energy Agency and the International Energy Forum hosted the talks which were attended by a range of oil market experts.

(Sourced from Reuters)