Saudi Minister Says OPEC+ Could Cut Production At Any Time

Citing “disconnect” in the oil futures market, Saudi Energy Minister Prince Abdulaziz bin Salman dangled the threat of potential OPEC+ production cuts that could come at any time.  In an interview with Bloomberg on Monday, the Saudi energy minister said that “extreme volatility” was “undermining the market’s essential function of efficient price discovery”, in turn rendering it impossible for physical users to manage the costs of hedging or navigate the inherent risk.  “This vicious circle is amplified by the flow of unsubstantiated stories about demand destruction, recurring news about the return of large volumes of supply, and ambiguity and uncertainty about the potential impacts of price caps, embargoes, and sanctions,” the Prince told Bloomberg.

The Prince described the markets as being in a state of “schizophrenia” and creating a “yo-yo” market that has lent a false sense of security.  “Spare capacity is severely limited and the risk of severe disruptions remains high,” he said.  The energy minister insisted that OPEC+ is “stronger and more cohesive than ever”, but also indicated that the expanded cartel could cut output at any time “and in different forms”.  The minister’s comments come as the cartel begins work on a new agreement for post-2022 and the nature of the interview suggests that OPEC+ plans to view any new agreements through the prism of the current market volatility, which the Saudis appear to view as having been hijacked and disconnected from true fundamentals.  The energy minister’s warning comes shortly after reports that OPEC+ members produced 2.9 million bpd below their production target in July.  NN: OPEC has CUT production even after the arm bumping US president the beggar and chief went to Saudi Arabia to gravel in the sand begging for more oil…..  he got less! Fucking insanity. All he has to do is issue the permits and unleash the American oil industry,,,, But the Liberal Lefties will never do that. All Europe has to do is approve the meditation gas pipeline from the  proven huge natural gas reserve from Egypt to Cyprus. Like in the US the liberal lefties take the position of stopping the pipeline so Europe will be forced into alternative grenniewinnie projects  that are not ready for prime time. Look at the destruction their stupid energy fantasies are causing. They really do no care….