Why is oil trading so concentrated in New York and London? Why do efforts to create new exchanges in the countries where most oil is produced so regularly fail? And why does the US dollar continue to dominate trading in commodities?
In this video, one of the most prominent energy economists in the world discusses the challenges of setting up new exchanges in new currencies and in new locations and gives a succinct description of the three reasons oil trading remains concentrated in existing centers even as consumption and production of energy continues to shift around the world.
Deutsche Bank’s Adam Sieminski was filmed in this video at the US Association for Energy Economics summit in Washington, DC. For full coverage of that event and one-on-one interviews with some of the country’s top energy forecasters, see here.