According to The Wall Street Journal, the Saudi oil minister has issued a warning that oil prices could decrease to as low as $50 per barrel if OPEC+ members fail to adhere to agreed-upon production limits. The minister’s remarks were seen as a potential threat to initiate a price war in order to maintain market share if other countries do not comply with the group’s agreements. Last week, Prince Abdulaziz bin Salman, the oil minister of Saudi Arabia, reportedly cautioned fellow producers about the potential price drop during a conference call.
The Wall Street Journal also mentioned that Prince Abdulaziz specifically called out Iraq and Kazakhstan for overproduction. A panel of ministers from the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, is scheduled to convene later on Wednesday to assess the market, with no anticipated policy adjustments. Additionally, oil prices surged by over 2% amidst escalating tensions in the Middle East.
