The oil industry will this week face the start of what could be the biggest shake-up it has known in how the commodity is priced globally.

As oil prices hover around $124 a barrel - shy of the $146 record set in July 2008, the International Organisation of Securities Commissions, the global regulator for the securities and futures markets, will begin its consultation with the oil industry for which it has been preparing for three months and has the backing of the G20 group of countries. Traders say the UK regulator, the FSA, has told them to be prepared for the paper and respond quickly within the 30-day response period.