Saudi Arabia’s Energy Minister on Thursday warned traders against massive bets on the oil market, saying he would try to make the market “nervous” and promised those who bet on the price of oil to suffer. damage “like hell”.
Comments from Prince Abdulaziz bin Salman, the most influential minister in OPEC, came after a virtual meeting of a key group of OPEC and its allies, led by Russia, known as OPEC +.
Prince Abdulaziz told the rally that OPEC + could hold an extraordinary meeting in October if the oil market deteriorates due to weak demand and rising coronavirus cases, according to an OPEC + source.
“Anyone who thinks they have a word from me on what we’re going to do next, absolutely lives in a La La Land… I will make sure that anyone who plays in this market will be crazy as hell,” Prince Abdulaziz said during ‘a press conference, asked about the next steps of OPEC +.
He said OPEC + would take a proactive and preemptive stance to address challenges in the oil market.
To those who want to bypass the oil market, Prince Abdulaziz warned: “Make my day,” he said in an apparent reference to the expression of Hollywood star Clint Eastwood in the neo-noir thriller Dirty Harry.
Brent oil prices extended their gains to trade up to 3% following news of a possible extraordinary meeting, above $ 43 a barrel.
On Thursday, the key OPEC + panel, known as the Joint Ministerial Follow-up Committee, insisted on greater compliance with cuts in oil production amid falling crude prices as uncertainty reigns over the global economic outlook.
The group warned that increasing cases of COVID-19 in some countries could dampen energy demand despite early indications of lower oil stocks.
The panel did not recommend any changes to its current target of cutting production by 7.7 million barrels per day (b / d), or about 8% of global demand.
OPEC + has been reducing production since January 2017 to help support prices and reduce global oil stocks. They increased their cuts to a record 9.7million bpd from May to July after demand fell due to the coronavirus crisis and a Saudi-induced price war sparked the falling oil prices.
The panel urged laggards such as Iraq, Nigeria and the United Arab Emirates to cut more barrels to compensate for overproduction in May-July while extending the compensation period from September to the end of December.
The panel said the cumulative overproduction reached 2.38 million bpd from May to August.