UPDATE 5-Saudi energy minister warns oil market gamblers will be hurt "like hell"

Published 17/09/2020, 10:19
© Reuters.
LCO
-

* Prince Abdulaziz says will make market "jumpy"
* Warns traders against shorting oil price
* OPEC+ could hold extraordinary meeting in Oct
* Compensation for overproduction extended until Dec

(Updates with news conference)
By Vladimir Soldatkin, Ahmad Ghaddar and Rania El Gamal
MOSCOW/LONDON/DUBAI, Sept 17 (Reuters) - The Saudi Energy
Minister warned traders on Thursday against betting heavily in
the oil market saying he will try to make the market "jumpy" and
promised those who gamble on the oil price would be hurt "like
hell".
The comments by Prince Abdulaziz bin Salman, OPEC's most
influential minister, came after a virtual meeting of a key
panel of OPEC and allies, led by Russia, known as OPEC+.
Prince Abdulaziz told the gathering OPEC+ could hold an
extraordinary meeting in October if the oil market soured
because of weak demand and rising coronavirus cases, according
to an OPEC+ source.
"Anyone who thinks they will get a word from me on what we
will do next, is absolutely living in a La La Land... I'm going
to make sure whoever gambles on this market will be ouching like
hell," Prince Abdulaziz told a news conference when asked about
OPEC+ next steps.
He said OPEC+ would take a pro-active and pre-emptive stance
in addressing oil market challenges.
To those who want to short the oil market, Prince Abdulaziz
had the following warning: "Make my day," he said in an apparent
reference to Hollywood star Clint Eastwood's expression from the
Dirty Harry neo-noir thriller.
Brent oil prices extended their gains to trade up 3% on the
news about a possible extraordinary meeting, above $43 per
barrel LCOc1 .
On Thursday, OPEC+'s key panel, known as the joint
ministerial monitoring committee, pressed for better compliance
with oil output cuts against the backdrop of falling crude
prices as uncertainty reigns over the global economic outlook.
The group warned that rising COVID-19 cases in some
countries could curb energy demand despite initial indications
of a decline in oil stocks.
The panel did not recommend any changes to their current
output reduction target of 7.7 million barrels per day (bpd), or
around 8% of global demand.

OPEC+ has been reducing production since January 2017 to
help to support prices and reduce global oil stockpiles. They
increased their cuts to a record 9.7 million bpd from May to
July after demand plunged due to the coronavirus crisis.
The panel pressed laggards such as Iraq, Nigeria and the
United Arab Emirates to cut more barrels to compensate for
overproduction in May-July while extending the compensation
period from September to the end of December.
The panel said cumulative overproduction has reached 2.38
million bpd from May until August.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
OPEC deviation from production cuts in August OPEC deviation
from production cuts in August https://tmsnrt.rs/3iF9xtz
Non-OPEC deviation from production cuts in August Non-OPEC
deviation from production cuts in August https://tmsnrt.rs/2Rzp3v1
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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