Saudi Arabia hints OPEC+ may cut oil production to ease growing dysfunction in global energy markets

Saudi Arabia hints OPEC+ may cut oil production to ease growing dysfunction in global energy markets

Saudi Arabia's energy minister said the crude futures market is suffering from a lack of liquidity and high volatility.

That's leaving the market more disconnected from fundamentals, he told Bloomberg.

OPEC+ could reduce oil production to alleviate the market dysfunction, he suggested.

OPEC+ could cut oil output as increased volatility and low liquidity rattle global energy markets, told Bloomberg.

In written responses to questions from Bloomberg, he warned that the trends are undermining the market's price functions, making the costs of hedging and managing risks prohibitive.

Bin Salman added that the lack of liquidity is giving the market "a false sense of security" and leaving it market more disconnected from fundamentals, as spare capacity remains extremely tight and the risk of severe disruptions is still high.

"In a way, the market is in a state of schizophrenia, and this is creating a type of a yo-yo market and sending erroneous signals at times when greater visibility and clarity and well-functioning markets are needed more than ever to allow market participants to efficiently hedge and manage the huge risks and uncertainties they face," he said.

Saudi Arabia is the world's top crude oil exporter and the de facto leader of OPEC. In the immediate onset of the