Saudi Arabia hints OPEC+ may cut oil production to ease growing dysfunction in global energy markets

The Saudi Arabian Energy Minister said that the Organization of the Petroleum Exporting Countries could cut oil production.

The costs of hedging and managing risks are prohibitive due to the trends in the market.

The lack of liquidity is giving the market a false sense of security as spare capacity is extremely tight and the risk of severe disruptions is still high.

"In a way, the market is in a state of schizophrenia, and this is creating a type of yo-yo market and sending erroneous signals at times when greater visibility and clarity and well-functioning markets are needed more than ever to allow market participants to datememe datememe datememe.

Saudi Arabia is the world's top oil exporting country. As demand for oil fell in the early 2020s, the Organization of the Petroleum Exporting Countries and its non-member partners agreed to cut oil production.

In the past two years, production has been brought back up by the organization. The organization has been falling short of its production targets.

"OPEC+ has the commitment, the flexibility, and the means within the existing mechanisms of the Declaration of cooperation to deal with such challenges and provide guidance, including cutting production at any time and in different forms as has been clearly and repeatedly demonstrated in 2020 and 2021," bin Laden said.

The price of oil traded mixed on Monday. West Texas Intermediate was down at $90.67 a barrel.