The oil minister of Saudi Arabia, Prince Abdulaziz bin Salman, has warned speculators that they may be “ouching” again if they try to profit from anticipating the OPEC+ group’s production decision at its next meeting on June 4.
Speaking at the Qatar Economic Forum in Doha as part of panel focused on energy, bin Salman said:
“Speculators, like in any market, they are there to stay. I keep advising that they will be ouching. They did ouch in April. I don’t have to show my cards, I’m not [a] poker player…but I would just tell them, watch out.”
The oil minister was referring to the surprise decision in April to cut more than a million barrels per day (bpd) of crude oil production. The OPEC+ group was initially criticised, but while oil prices initially rallied on the news, they later fell back as economic concerns weighed on the markets. Prince bin Salman said that the last half year or so had shown OPEC+ to be a responsible organisation, adding that it needed to be pre-emptive and proactive to mitigate the ongoing market volatility. At its next meeting, OPEC+ members will need to balance the current pessimism in the market with an expected supply crunch towards the end of this year.
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