While the technical damage to the petroleum complex markets is undeniable, the question becomes how much of this reflects a major collapse in global demand and how much is just a technical game.
The market’s recent collapse suggests not only has the market taken out the risk of a loss of supply from the Israel-Hamas conflict but from any other conflict in the universe. It is also signaling a potential global recession that despite some real demand concerns, has not happened yet.
Today the Saudi oil minister is calling out those evil speculators, whom I am a proud member of, by saying that the recent selloff in oil is not about supply or demand but is “just a ploy”. Saudi Arabia’s energy minister Prince Abdulaziz bin Salman is calling out the recent oil price collapse by saying it’s “phony.” He seems to be very upset when he hears talk about weak demand out of China or any other play in the world.
The prince says that, “speculators are the problem, not demand. Demand “It’s not weak,” People are pretending it’s weak. It’s all a ploy.”