OPEC refutes WSJ claims about Saudi Arabia’s plan to derail oil market
The Organization of the Petroleum Exporting Countries (OPEC) Secretariat has denied claims made by The Wall Street Journal, which reported that Prince Abdulaziz bin Salman, the oil minister of Saudi Arabia, threatened to drop the oil price to $50 per barrel if Kazakhstan and Iraq didn’t follow OPEC+ production quotas.
«With reference to the Wall Street Journal (WSJ) article, dated 2 October 2024, titled ‘Saudi Oil Min Said Prices May Fall to $50/B if Others Cheat, Sources Say,’ the OPEC Secretariat categorically refutes the claims made within the story as wholly inaccurate and misleading. 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,» the OPEC secretariat said in a statement.
The WSJ’s article also attributed the following quote to the minister, as saying: «Some better shut up and respect their commitments toward OPEC+.» The organization called these claims groundless.
«OPEC secretariat stresses 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. The alleged statements, attributed to unnamed sources, lack any credibility and are completely fabricated,» the organization stated.
The secretariat also underlined that both face-to-face and telecommunication meetings are always held in a civilized and respectful manner.
«Therefore, it is deeply concerning that the WSJ would publish such a report, which not only lacks journalistic integrity and professionalism but also shows a blatant disregard for the respect owed to OPEC+ ministers,» the statement concluded.
Kazakhstan, Iraq and Russia have officially confirmed that they have fulfilled their obligations under the September oil production compensation plans and will follow them until the agreement expires. Representatives from these states declared this during the 55th Joint Ministerial Monitoring Committee (JMMC) meeting, which reviewed crude oil production data and current market conditions.
Last week, Saudi Arabia’s Minister of Energy, Abdulaziz bin Salman, warned that oil prices could drop to $50 per barrel if Kazakhstan and Iraq exceed their OPEC+ quotas. He cited that Iraq was producing 400,000 barrels per day above its quota, and Kazakhstan’s oil output is projected to increase by 720,000 barrels per day after the Tengiz expansion project is completed.
