It appears oil traders are disappointed with Al-Naimi's comments. Suggesting hopefully (for some) that the 'freeze' is the start of a process, al-Naimi then dropped the tape-bomb:
- *SAUDI ARABIA WON'T CUT OIL PRODUCTION: NAIMI
- *HIGH-COST PRODUCERS MUST LOWER COSTS OR LIQUIDATE: NAIMI
He then added that "not all the countries will freeze; The ones that count will freeze." WTI Crude (April) front-month futures have erasd yesterday's gains.
Live Fed here (click image for link)
- *OIL FREEZE IS BEGINNING OF PROCESS: SAUDI MINISTER NAIMI
- *MOST COUNTRIES THAT COUNT WILL FREEZE OIL OUTPUT: NAIMI
- *HIGH-COST OIL PRODUCERS FACE `INEVITABLE' RECKONING: NAIMI
- *OIL PRICE ROSE TOO HIGH LEADING TO SUPPLY INCREASE: NAIMI
- *OIL MARKET WON'T SEE REPEAT OF EVENTS OF 1986: NAIMI
- *OIL MKT WILL REBALANCE, DEMAND WILL PICK UP: SAUDI MINISTER
- *SAUDI ARAMCO HASN'T CUT A SINGLE PROGRAM AMID SLUMP: NAIMI
And then added this...
- *SAUDI ARABIA HASN'T DECLARED WAR ON SHALE OIL: NAIMI
- *SAUDI ARABIA STILL HAS MORE ECONOMIC OIL RESOURCES THAN SHALE
And the most expliti threat:
- NAIMI: WE CAN COEXIST WITH OIL TO $20/BARREL
Sure sounds like war?