ICYMI – Saudi oil minister says there is a risk of an oil price supercycle due to lack of investing
Saudi Arabia’s energy minister Prince Abdulaziz bin Salman was speaking at the Robin Hood Investors Conference (i.e. an audience of hedge funds)
- warned of a risk of a supercycle due to “lack of investing”
The background to his investment comment is that some oil producers and exploration firms have scaled back drilling budgets to conserve cash and avoid a new supply glut. Also, hopes for green energy are playing a role in this.
He added:
- “I think it’s my job, and others’ jobs, to make sure this super-cycle doesn’t happen”
Hmmm. He may not be too unhappy with higher oil prices but I guess the argument is higher prices will attract new supply (this is it usually how it works … looking at you US shale).