It appears that OPEC’s credibility is about to take a big hit.
As we said earlier, following comments from the Saudi energy minister that oil shorts will be “ouching” soon, the market interpreted this as a sign that OPEC+ would proceed with another output cut following the unexpected move in early April which briefly sent oil prices sharply higher. The alternative would be another painful blow to OPEC’s credibility, which has emerged as a kind of jawboning “central bank” for the commodity.
But overnight, oil bulls were served a cold shower by Russian Deputy Prime Minister Alexander Novak who said he expected no new steps from OPEC+ when it meets in Vienna on June 4, the state-owned news agency RIA reported.
As Bloomberg’s Grant Smith notes, the contradictory signals on oil policy from OPEC+ leaders Saudi Arabia and Russia suggest the group probably won’t agree new measures next week. That’ll do little to
Keep reading this article on Zero Hedge - Blog.