Saudi Energy Minister Warnings to Speculators Highlighted Ahead of OPEC+ Meeting

Saudi Energy Minister Prince Abdulaziz bin Salman upon his arrival at the OPEC headquarters in Vienna (AFP)
Saudi Energy Minister Prince Abdulaziz bin Salman upon his arrival at the OPEC headquarters in Vienna (AFP)
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Saudi Energy Minister Warnings to Speculators Highlighted Ahead of OPEC+ Meeting

Saudi Energy Minister Prince Abdulaziz bin Salman upon his arrival at the OPEC headquarters in Vienna (AFP)
Saudi Energy Minister Prince Abdulaziz bin Salman upon his arrival at the OPEC headquarters in Vienna (AFP)

The OPEC+ countries seek to maintain the stability of oil markets at their meeting on Sunday amid global economic turmoil and uncertainty surrounding global economic and political prospects.

Last week, Saudi Energy Minister Prince Abdulaziz bin Salman warned "short sellers" against betting on oil prices falling, saying they should watch out.

Ministers of OPEC and its allies began their two-day meetings on Saturday at the organization's headquarters in Vienna.

Reuters quoted unnamed sources saying that the OPEC+ alliance will discuss possible options, including additional oil cuts.

OPEC+ pumps around 40 percent of the world's crude, meaning its policy decisions can significantly impact oil prices.

Several countries in the coalition had announced voluntary cuts of 1.6 million barrels per day last April, in addition to the two million barrels per day that had been previously reduced. The decision took effect in May.

The surprise output announcement in April helped to drive oil prices about $9 per barrel higher to above $87, but they swiftly retreated, under pressure from concerns about global economic growth and demand. On Friday, the international benchmark Brent settled at $76.

However, Russian Deputy Prime Minister Alexander Novak said he did not expect any new steps from the OPEC+ group at its meeting in Vienna on June 4, according to Russian media.

"This figure is premature, and these matters have not yet been addressed."

Western countries have accused OPEC of manipulating oil prices and undermining the global economy by raising energy costs.

The West also accused OPEC of being too biased toward Russia, despite sanctions over Moscow's invasion of Ukraine.

Reuters indicated that OPEC officials said the West's money-printing over the last decade exacerbated inflation and forced oil-producing nations to take measures to preserve the value of the leading commodity among their exports.

Asian countries like China and India bought the lion's share of Russia's oil exports and refused to join Western sanctions against Russia.

UAE Energy Minister Suhail al-Mazrouei said that there is an aspiration for a resolution that guarantees a sustainable balance of supply and demand.

The International Energy Agency (IEA) expects global oil demand to rise further in the second half of 2023, potentially boosting oil prices.

Analysts at JPMorgan, however, said OPEC needed to act more quickly to adjust supply to record high levels of US output and higher-than-expected Russian exports.

"There is simply too much supply," the JPMorgan analysts said in a note, adding that extra cuts could amount to around one million bpd.



Trump Uncertainties Push Safe-haven Gold to Near all-time Highs

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Trump Uncertainties Push Safe-haven Gold to Near all-time Highs

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices soared to near three-month highs on Wednesday, trading below its record peak, fuelled by a soft dollar and lack of clarity around US President Donald Trump's policy plans, which investors fear could trigger trade wars and elevate market volatility.

Spot gold added 0.3% to $2,753.79 per ounce as of 9:45 a.m. ET (1445 GMT). Prices were at their highest since Oct. 31 when they hit their all-time-high of $2,790.15.

US gold futures gained 0.2% to $2,764.80.

The dollar index dipped to a more-than-three-week low, making greenback-priced bullion less expensive for holders of other currencies, Reuters reported.

"There are uncertainties with proposed tariffs and other things, and gold typically does well when there's a large or even a moderate amount of uncertainty in the market, it's a natural place where people gravitate to," said Ryan McIntyre, Senior Portfolio Manager at Sprott Asset Management.

Trump said his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.

Gold is often viewed as a haven during times of economic and geopolitical turmoil, but Trump's proposed policies are broadly regarded as inflationary, potentially compelling the US Federal Reserve to sustain elevated interest rates for an extended period to rein in rising price pressures.

Trump has not provided many details about his proposed tariffs, making investors question the aggressiveness of the move, and the depth of its potential impacts.

"(Trump) has been perhaps just a shade less hawkish on tariffs as feared which helps - less/lower tariffs is taken to indicate lower inflation hence potential for more rate cuts," said Tai Wong, an independent metals trader.

Spot silver fell 0.6% to $30.68, but hovered near a one-month high hit on Jan. 16.

Platinum rose 0.3% to $946.50 and palladium gained 1.9% to $975.27.