OPEC stated that reports about Saudi Arabia warning that oil prices could fall to $50 a barrel are "completely inaccurate and misleading."

A Wall Street Journal article on Wednesday reported that the Saudi Energy Minister warned that if OPEC+ member countries do not comply with the agreed production limit agreement, oil prices will fall to $50 per barrel. Later that evening, OPEC refuted the report, calling it "completely inaccurate and misleading."

The aforementioned report cited unnamed OPEC representatives who said they heard Prince Abdulaziz bin Salman issue the warning during a telephone conference last week. The Wall Street Journal, citing sources, said he specifically pointed out the issue of overproduction by Iraq and Kazakhstan.

The Wall Street Journal's report also stated that these warnings were interpreted by other member countries as a threat that Saudi Arabia is willing to initiate a price war to maintain its market share if they refuse to comply with the production cut agreement.

However, OPEC emphasized that no such telephone conference was held last week, and no telephone or video conferences have been held since the September 5 OPEC+ meeting.

The OPEC and non-OPEC oil-producing countries' Ministerial Monitoring Committee (JMMC) held a meeting on Wednesday. Despite indications of an impending oil supply surplus, OPEC+ did not change its plan to gradually resume oil production by the end of the year.

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After Iran, an OPEC member country, launched an attack on Israel, escalating the year-long Middle East conflict, oil prices have risen by more than 5% in the past two days, but the global benchmark Brent crude still hovers around $75 per barrel, down 14% from July, as traders focus on weak demand in the world's largest oil-consuming countries and supply expansion from non-OPEC+.

Although the cooling of oil prices has provided relief for consumers who have been plagued by rampant inflation for years and has also provided a reason for central banks to shift towards lowering interest rates, it poses a financial threat to OPEC+ member countries.

According to unnamed representatives, the JMMC meeting on Wednesday mainly focused on the issue of Iraq, Kazakhstan, and Russia failing to fulfill the production cut agreement.

Although these countries "reaffirmed their firm commitment to the agreement," they mostly continue to overproduce and have not yet begun the promised compensatory production cuts. These countries held separate seminars in September to discuss production levels.According to insiders from Russia's Ministry of Energy, Russia's own data shows that its crude oil production in September was slightly below the monthly target under the OPEC+ agreement. It is reported that Russia produced 8.97 million barrels per day last month, a decrease of about 13,000 barrels per day compared to the level in August. The Russian Ministry of Energy did not immediately respond to requests for comment.

At the meeting on Wednesday, the three aforementioned OPEC+ member countries "confirmed that they have produced according to the plan submitted in September and have carried out compensatory production cuts," OPEC+ said in a press release, but did not provide figures.

OPEC+ plans to gradually lift the voluntary production cut of 2.2 million barrels per day starting in December, two months later than originally scheduled.

The alliance still has a few weeks to decide whether to continue the production increase in December. Ministers plan to meet on December 1 to review policies for next year.

As the oil market further deteriorates, analysts including JPMorgan and Citigroup have expressed doubts about whether OPEC+ can continue to advance its scheduled production increase plan.

According to the IEA's estimate, by 2025, oil consumption will grow by less than 1 million barrels per day, and supply will increase by 50%. Even if OPEC+ continues to limit production, the market will be in surplus.