OPEC calls out the Wall Street Journal

There is an interesting war of words unfolding between OPEC and the Wall Street Journal.

The WSJ today published an article saying that Saudi’s oil minister warned of $50 oil if cheaters within OPEC don’t stick to limits. They cited delegates who were on the call.

The Saudi message was “there is no point in adding more barrels if there isn’t room for them in the market,” said a delegate who attended. “Some better shut up and respect their commitments toward OPEC+.”

OPEC just hit back with a strong denial and the supposed call never even took place.

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. It also attributed an alleged quote to the Minister, stating: “Some better shut up and respect their commitments toward OPEC+.” These claims are entirely unfounded.

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.

OPEC secretariat emphasizes that its meetings, whether in person or via teleconference, are consistently conducted in a civil 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.

I usually side with the press in these cases because sources are always checked out but it’s an interesting quirk. I also don’t think the report particularly matters to today’s oil price action, though you could argue it makes OPEC sound like it’s closer to a breakdown.

I will note that WSJ reporter Summer Said is credited as one of the three authors and she’s sniffed out OPEC cuts before but has also had some strange intel reports.

This article was written by Adam Button at www.forexlive.com.