Saudi Arabia’s energy minister has warned oil speculators to “watch out” ahead of the latest meeting since OPEC+ members opted to slash output in early April.
“I would just tell them to watch out,” Prince Abdulaziz bin Salman said on Tuesday, hinting that those betting against oil price rises could be left hurting after the meeting in Vienna on June 4.
"Speculators, like in any markets, they are there to stay. I keep advising them that they will be ouching,” he added, “they did ouch in April”.
Despite OPEC+, which accounts for 40% of global supply, cutting oil output by over one million barrels a day from early April, prices have slipped since.
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.
StoneX analyst Fawad Razaqzadal added it “remains to be seen” where prices head next, agreeing that “the weaker demand narrative is now mostly priced in”.
“Short sellers have less reason to slam prices lower than a couple of weeks ago,” he continued, “the risks are skewed to the upside from here [and I] reckon $80 is not an unrealistic target” for WTI.