Oil spikes after OPEC claims: “Worst for oil market”

Crude prices rose on Thursday, while OPEC said on Thursday that oil was “the worst” for the market. The next month’s crude contract rose 3.08% to 15.09 ET.241.22 following optimistic comments.

Secretary-General Mohamed Barkindo said OPEC would continue to manage its oil market, adding that “the bad situation is over.” The comments came as OPEC unveiled its annual World Oil Outlook.

Global inventories are currently 220 million barrels above the 5-year average, according to Bloomberg. Regardless, OPEC says it hopes the market will be “very healthy” in the Q420.

Notably, the side-scrolling for oil could only begin, as the combined Brent net speck exposure is near the bottom of the decade, indicating that there could be plenty of room for relatively easy – and potentially hard – move moves.

Remember, it was less than a week ago that we published a report on how Saudi Arabia has increased its rhetoric, even warning oil short sellers not to bet on commodity prices. Saudi Energy Minister Prince Abdulaziz bin Salman gave “clear indications” in mid-September that the direction of production policy could change in the near future as oil prices fall.

He said last month: “We will never leave this market. I want the individuals on the trading floor to stay as fast as possible. I’m going to make sure that the gamblers who play in this market will come out like hell. “

OPEC and its allies said they would be “active and leading” in addressing falling prices, with “participating counties recommending more necessary action.”

Abdulaziz held a meeting last month to “forcefully condemn” members who were delivering too much. Its share may have been directed to UAE Energy Minister Suhail Al Mazroi, who attended the meeting. The UAE has been “one of the worst quota breakers” in OPEC +, cutting only 10% of its pledge in August.

Abdulaziz said at the time: “Strategies to hide over-production and non-compliance have been used many times in the past, and always fail. They achieve nothing and damage our reputation and credibility. ”

By ZeroHedge.com

Read more at oilprice.com:

Download the free oilpress app today

Back to homepage