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The agency theory is a supposition that explains the relationship between principals and agents in business.Agency theory is concerned with resolving problems that can exist in agency relationships due to unaligned goals or different aversion levels to risk.

Principals commonly delegate decision-making authority to the agents.In this we note that in January they increased month-on-month for the first time since July.However, the increase of 18 mb was half the average level for January seen in the past five years.Therefore, although the agent is the decision-maker, they are incurring little to no risk because all losses will be the burden of the principal.This is most commonly seen when shareholders contribute financial support to an entity that corporate executives use at their discretion.

Crude oil prices are slightly lower than last month, and have generally been relatively stable for several weeks.

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