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.
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.
