In response to written questions from Bloomberg News, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said that the OPEC and its allies (OPEC+) may be compelled to reduce oil production, as the physical and futures markets get increasingly strayed away from fundamentals.

Key quotes

“The paper and physical markets have become increasingly more disconnected.

“Futures prices don’t reflect the underlying fundamentals of supply and demand, which may require the group to tighten production when it meets next month to consider output targets.”

“Witnessing this recent harmful volatility disturb the basic functions of the market and undermine the stability of oil markets will only strengthen our resolve.”

Market reaction

WTI is cheering these above comments, currently trading at $91.02, adding 0.62% on the day.