Saudi Oil Minister Warns Market Speculators of Potential Consequences and Calls for Stability

Saudi Oil Minister Prince Abdulaziz bin Salman issued a warning to market speculators, advising them to be cautious as they could face negative consequences. Speaking at the Qatar Economic Forum in Doha, he reiterated his stance against speculators who profit from predicting OPEC+ output decisions. The recent independent production cuts announced by some OPEC+ members temporarily boosted oil prices but were followed by a decline. Amid market volatility and ongoing concerns, the minister stressed the need for OPEC+ to remain proactive and pre-emptive. The possibility of further production cuts in June is being. questioned, despite the International Energy Agency predicting a supply squeeze in the near future. While market pessimism persists, the IEA anticipates tighter market balances in the second half of the year. However, the organization’s executive director highlighted the potential impact of a U.S. debt default on oil demand and prices. Analysts at UBS revised their Brent price forecasts due to higher-than-expected crude oil volumes and recession fears, expecting the market to experience undersupply in June. The oil minister also emphasized the risks of market uncertainty and the diminishing spare capacity in producing countries. He called for increased investment in both fossil fuels and renewable projects to address energy security concerns. Despite the challenges, Saudi Arabia remains committed to tackling volatility and maintaining stability in the oil market.