Saudi Energy Minister: Oil market is in a state of schizophrenia
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Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud believes that the “paper and physical markets” for oil are becoming increasingly disconnected. In his opinion, the market is “in a state of schizophrenia.”
“The paper and physical markets are becoming more and more disconnected. In a sense, the market is in a state of schizophrenia and this creates a kind of yo-yo market and sends the wrong signals at a time when more transparency and clarity and well-functioning markets are needed more than ever to enable participants to effectively mitigate risk and manage them and the uncertainty they face,” said the minister Bloomberg.
The head of the Ministry of Energy of Saudi Arabia believes that transparency in the functioning of markets is necessary. This will allow you to effectively manage risks and adjust to uncertainties.
The largest oil producers included in the OPEC+ deal decided in August to increase production in September by only 100,000 barrels per day. They attributed this to a lack of free capacity. Under the terms of the deal, the Russian Federation will have to increase production to 11 million bpd, but this level will be extremely difficult to achieve, given the problems with exports due to sanctions.
More details – in the material “Kommersant” “You can’t get a hundred a day”.
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