OPEC Plus' decision can be painful for 'short sellers'

Doha: Saudi Arabian Oil Minister Prince Abdulaziz bin Salman has warned that the decision to be made at next month’s OPEC Plus meeting could be painful for short sellers in the market. Earlier, he also reminded that the decision OPEC Plus took in April was also a shock to the speculators in the market. Due to this warning from the Saudi minister, there are indications that the fuel-producing countries will again decide on the reduction in the meeting in June. Meanwhile, the Bank of America report predicts that crude oil prices may go up to 90 dollars per barrel by the end of 2023.

Last month, Saudi Arabia and Russia-owned OPEC Plus countries announced a reduction of 11 lakhs, 50,000 barrels. This reduction has started from May 1 and its results have started coming out slowly. Deputy Prime Minister Alexander Novak said Russia has reduced fuel production by 500,000 barrels. The United States expressed strong displeasure over this decision of the OPEC plus countries. The US had warned that this fuel production reduction is inappropriate when the international market is unstable due to the Russia-Ukraine conflict.

After that, crude oil prices in the fuel market have come down to some extent and currently, crude oil is traded at 76 dollars per barrel. Even after the cuts, the decision of the US and European countries is believed to be responsible for the low crude oil prices. In the Russia-Ukraine conflict, the oil-producing Middle Eastern and African countries took an independent stance without supporting the West. Therefore, to teach these countries a lesson, it is believed that Western countries, including the United States, are moving to lower fuel prices.

Furthermore, the US had accused the decision to cut fuel production to benefit Russia. American media and analysts blamed the decision on providing economic support to Russia, which, like Saudi Arabia, leads the OPEC Plus group. It was also claimed that Russia would benefit from the increased tariffs due to cuts in fuel production. Western media criticized Saudi and other OPEC Plus countries for indirectly supporting Russia’s conflict in Ukraine.

But it has come to light that OPEC countries, including Saudi Arabia, have ignored this criticism. The warning given by the Saudi minister is also part of this.

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