Saudi Arabia's energy minister has sounded a warning to oil price short-sellers at the Qatar Economic Forum, underway in Doha.
The oil price rallied overnight, lifting S&P/ASX 200 Index (ASX: XJO) oil shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) marginally higher in lunchtime trade.
Let's check the comments from the Saudi energy minister and what could be ahead for the oil price.
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What's being said about oil?
The price of oil rose overnight amid comments from Saudi energy minister Prince Abdulaziz bin Salman at the Bloomberg-powered event.
Asked if he was worried about short-sellers, he replied, "I don't worry, I think", adding:
Speculators, like in any market, they are here to stay. I keep advising them that they will be ouching — they did ouch in April.
I don't have to show my cards. I am not a poker player and I don't know how to play poker, but I got it from a movie somewhere….but I would just tell them, watch out.
The WTI crude oil price is up 1.18% at the time of writing to US$73.77 a barrel, while Brent Crude oil is rising 1.09% to US$77.68 a barrel, Bloomberg data shows.
One analyst believes the Saudi minister's comments sparked a "relief rally" in crude oil, raising speculation the Organization of the Petroleum Exporting Countries (OPEC) could intervene in the oil market to "support prices".
In a research note, ANZ senior economist Kishti Sen said:
Money managers have become increasingly bearish in recent weeks amid fears of a weaker global economy.
This is despite the OPEC+ alliance agreeing to cut production by 1.6mb/d in April. IEA [International Energy Agency] recently upgraded its estimate of demand growth this year on better-than-expected consumption in China.
Woodside shares are currently trading 0.62% higher at $34.945 a share while the Santos share price is up 0.68% at $7.45.
Share price snapshot
The Woodside share price has risen 21% in the last year.
The Santos share price hasn't fared so well, shedding nearly 9% in the last 12 months.
