Oil prices have been swinging up and down seemingly without reason. This volatility will continue in the short term, but the foundation for long-term price stabilization is being laid behind the scenes.
oil production freeze
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The City of London is hands-down the most important energy financing command center on Earth. More money for oil and gas projects is raised within a three-mile radius of Liverpool Street station than anywhere else in the world.
Naturally, this part of town is packed to the rafters with some of energy's most influential and important "money men" and women.
When I was at the Palace of Westminster for a closed-door energy briefing at the House of Lords, these financiers were absolutely electrified by one recent development.
After a hefty rise of 46.9% for the month through close last Friday, WTI crude fell for two consecutive sessions to start the week.
As always, pundits with no real experience in the industry will blame the "glut" - but excess supply on its own is not responsible for today's oil conundrum.
Instead, the key factor in how people regard the market and anticipate oil prices today is guaranteed excess supply.