Oil gains after Saudis flag OPEC+ action to arrest price slide

Oil rose near US$92 a barrel in New York after Saudi Arabia said OPEC+ may be forced to cut production to stabilize a volatile market.

“Extreme” volatility and a lack of liquidity mean futures are increasingly disconnected from fundamentals, Saudi Oil Minister Prince Abdulaziz bin Salman told Bloomberg. That put a floor under prices in a bumpy session on Monday and prompted some Asian refiners to voice concerns about market uncertainty.

Oil has seen a tumultuous period of trading since Russia’s invasion of Ukraine in late February upended flows. OPEC+ has reversed all of the output cuts made during the pandemic, but Prince Abdulaziz suggested the cartel may need to tighten production again when it meets next month to discuss supply targets.