Saudi minister warns oil short-sellers ahead of OPEC meeting

Saudi Arabia’s energy minister has cautioned oil speculators to “be careful” ahead of the latest OPEC+ meeting, after the group decided to cut output in early April.

“I would just tell them to watch out,” Prince Abdulaziz bin Salman remarked on Tuesday, implying that those wagering against oil price hikes may be disappointed following the June 4 summit in Vienna.

“Speculators are here to stay, as they are in any market.” “I keep telling them they’re going to ouch,” he said, “and they did ouch in April.”

Despite OPEC+, which accounts for 40% of global supply, reducing oil output by nearly a million barrels per day beginning in early April, prices have fallen since then.

West Texas Intermediate Crude peaked at US$83.09 per barrel in mid-April, while Brent hit US$87.33, with each falling to US$72.13 and US$76.22 respectively by Tuesday morning – declines of around 13% apiece.

US economic uncertainty has weighed into prices so far, though SP Angel analysts noted now “improving fundamentals” from the constrained supply and recovering Asian demand.