OPEC objects to report about Saudi minister's warning about production cuts

By Jeremy Binckes and Steve Goldstein

The Organization of the Petroleum Exporting Countries on Wednesday said it refuted a Wall Street Journal report that Saudi Arabia's oil minister Prince Abdulaziz bin Salman warned fellow producers that oil could drop to $50 a barrel if they don't comply with agreed production cuts.

"The article falsely reported that a conference call took place in which the Saudi Arabian Energy Minister allegedly warned OPEC+ members of a potential price drop to $50 per barrel should they fail to comply with agreed production cuts," OPEC wrote on social-media platform X, adding that "no such conference call occurred last week, nor has any call or video conference taken place since the last OPEC+ meeting on September 5."

Earlier Wednesday, The Wall Street Journal reported on the comments made by the oil minister to other OPEC+ members.

The report said he singled out Iraq and Kazakhstan in particular.

About half of the oil market is supplied by OPEC members as other countries including the U.S. and Brazil are increasing production.

The comments were reported to have been made before Iran lobbed missiles at Israel, which sent crude prices soaring in Tuesday's session.

Front-month West Texas Intermediate crude (CL.1) was up 41 cents, or 0.6%, at $70.24 a barrel in afternoon trade Wednesday, while December Brent crude (BRN00), the global benchmark, rose 47 cents, or 0.6%, to $74.02 a barrel.

See also: What Iran's missile attack on Israel means for oil prices

-Jeremy Binckes -Steve Goldstein

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10-02-24 1355ET

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