Comments from Saudi energy minister push oil benchmarks higher

Emailed comments from Saudi Arabia’s energy minister Khalid al-Falih, which were part of a draft transcript of an interview with the Saudi Press Agency, was mistakenly sent out to journalists on Thursday. That mistake has so far turned out to be special for the crude oil prices. Both of the global benchmarks, West Texas Intermediate and North Sea Brent broke above their highs made on Monday after an informal meeting of the OPEC members got announced, over the news. The leaked comments are very relevant are vital with regard to the meeting.

Saudi Arabia’s new energy minister Khalid al-Falih said, ““If there is a need to take any action to help the market rebalance, then we would, of course in cooperation with OPEC and major Non-OPEC exporters,” About the meeting he said, “an opportunity for OPEC and major Non-OPEC ministers to meet and discuss the market situation, including any possible action that may be required to stabilize the market.”

As of now, it is hard to grasp that the OPEC members would be able to agree on any coordinated actions to cut or freeze production given the level of tensions between the Kingdom and Iran. The last attempt for coordinated action failed miserably in April due to this same rivalry.

Brent is currently trading at $46.2 per barrel and WTI at $43.8 per barrel.