Saudi prince says oil futures disconnect may force OPEC+ action
BNN Bloomberg
Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said 'extreme' volatility and lack of liquidity mean the futures market is increasingly disconnected from fundamentals and OPEC+ may be forced to cut production.
“The paper and physical markets have become increasingly more disconnected,” he said in response to written questions from Bloomberg News.
Prince Abdulaziz represents the largest oil producer in OPEC+ and is arguably the most important player in the 23-nation alliance. He said futures prices don’t reflect the underlying fundamentals of supply and demand, which may require the group to tighten production when it meets next month to consider output targets.
“Witnessing this recent harmful volatility disturb the basic functions of the market and undermine the stability of oil markets will only strengthen our resolve,” he said.
