Saudi Arabia’s energy minister warns speculators ahead of Opec+ meeting

Saudi Arabia’s energy minister warns speculators ahead of Opec+ meeting

Blames IEA for volatility in 2022 on back of misguided data

Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman Al-Saud. — Reuters file

By Reuters Published: Tue 23 May 2023, 4:50 PM Last updated: Tue 23 May 2023, 4:51 PM

Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said on Tuesday he would keep short sellers “ouching” and told them to “watch out”, days before a planned Opec+ meeting to decide on future oil policy.

“Speculators, like in any market they are there to stay, I keep advising them that they will be ouching, they did ouch in April, I don’t have to show my cards I’m not a poker player... but I would just tell them watch out,” he told the Qatar Economic Forum organised by Bloomberg.

Short sellers are investors that bet on oil prices falling, and hence when an unexpected move by Opec+ to cut production causes a rally, they are forced to close their positions at a loss.

Saudi Arabia, the world’s largest oil exporter, and other Opec+ producers announced surprise voluntary cuts in April that lifted prices after a slump driven by concerns that a banking crisis could impact demand.

Analysts at Standard Chartered bank said in a note this week