Potential Big Weekend of Crude Oil Prices
Learn about the potential big weekend of crude oil prices, including warnings from Saudi Arabia's energy minister, the OPEC+ meeting, and the Saudi-led production cut this spring that sent prices surging.
Jim Bianco
biancoresearch.eth Bianco Research LLC offers macro investment research on financial markets
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— Jim Bianco (@biancoresearch) June 3, 2023
This is potentially a big weekend of crude oil prices.
OPEC meeting this weekend and the Saudi Energy Minister, Prince Abdulaziz bin Salman (the older half brother of Crown Prince Mohammed bin Salman (MBS), has been making warnings.https://t.co/HUwUURnyXT -
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— Jim Bianco (@biancoresearch) June 3, 2023
May 23:
Saudi Arabia's energy minister warned crude speculators to "watch out" before an OPEC+ meeting next month."
"I keep advising that they will be ouching," Referencing a Saudi-led production cut this spring that sent prices surging... "They did ouch in April." -
— Jim Bianco (@biancoresearch) June 3, 2023
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4/6
— Jim Bianco (@biancoresearch) June 3, 2023
But speculators are not taking this guy seriously. That "ouch" in April was short-lived.
(March 8, 2022, was two weeks after Russia's invasion of Ukraine) pic.twitter.com/1yVPGrJk2q -
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— Jim Bianco (@biancoresearch) June 3, 2023
And the large speculators are holding the smallest net long position in seven years.
(Large speculators in crude oil have been net long every week since 2003. So, the smallest net long in seven years is them expressing a very bearish outlook for the price.) pic.twitter.com/UPPOg4vdEz -
6/6
— Jim Bianco (@biancoresearch) June 3, 2023
Bottom line will OPEC deliver production cuts that will "ouch" speculators like Prince Abdulaziz bin Salman keep promises?
Or will they fail and emboldened speculators to short even more?
We should know by Monday morning.