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The energy minister of Saudi Arabia disputed the recent drop in oil prices, attributing it to a scheme by speculators, rather than weak demand.
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Prince Abdulaziz bin Salman stated, “It’s not weak. People are pretending it’s weak. It’s all a ploy.”
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In response to the perceived oil weakness, Saudi Arabia has committed to reducing crude production by 1 million barrels per day until year-end.
Prince Abdulaziz bin Salman, Saudi Arabia’s energy minister, dismissed the notion of diminished oil demand and labeled the retreat in oil prices as a contrived act by speculators.
The international benchmark Brent crude has declined by 17% from its recent high in September, now hovering around $81 per barrel as of Friday.
“It’s not weak,” Prince Abdulaziz bin Salman told reporters in Saudi Arabia on Thursday, according to Bloomberg’s report. “People are pretending it’s weak. It’s all a ploy.”
The energy minister suggested that market participants might be conflating increased oil exports from the Middle East in recent months with heightened oil production.
He clarified that the surge in shipments during September and October is a seasonal occurrence and does not necessarily indicate an uptick in output.
“It’s an abuse of numbers,” he remarked.
Saudi Arabia, the de facto leader of the OPEC+ cartel, has aggressively curtailed its crude production as part of efforts to bolster prices, echoing concerns over market distortions from high-ranking officials.
In addition to OPEC’s production cuts, Saudi Arabia has independently implemented a voluntary production cut of 1 million barrels a day, extending it through the remainder of the year.
Although this measure briefly propelled crude prices to nearly $100 per barrel in September, recent weeks have seen oil prices ease due to varied demand outlook and increased global interest rates, which can stifle economic growth and demand.
Despite this, certain industry forecasts remain optimistic about oil’s long-term prospects, citing underinvestment and the potential for undersupply. According to one prominent shale executive, oil prices could surge to $150 per barrel.
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