• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 17 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 1 hour "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 6 days Wind droughts
  • 7 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 3 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 9 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Xi Is Set To Be Re-Elected As China’s Leader
  • 7 days Oil Prices Fall After Fed Raises Rates
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 12 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
German Manufacturers Struggle As Energy Crisis Persists

German Manufacturers Struggle As Energy Crisis Persists

Germany’s manufacturing industries are crumbling…

The Next Bullish Catalyst For Oil Markets

The Next Bullish Catalyst For Oil Markets

Oil markets were relatively unscathed…

Oil Giant Comparison: BP vs Suncor

Oil Giant Comparison: BP vs Suncor

Both BP and Suncor have…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Saudi Minister Says OPEC+ Could Cut Production At Any Time

  • Prince Abdulaziz bin Salman prepared the market for a new round of production cuts.
  • The Prince described the markets as being in a state of “schizophrenia”.
  • Prince Abdulaziz: “Spare capacity is severely limited and the risk of severe disruptions remains high,”.

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. 

Without sufficient liquidity, he said, there is a high level of disconnect, which means the “markets can’t reflect the realities of the physical fundamentals in a meaningful way…”. 

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. 

By Charles Kennedy For Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News