Oil prices up after bullish Saudi comments, falling U.S. stockpiles

Oil prices rose on Wednesday after data showed U.S. inventories and fuel supplies tightening and following a warning from the Saudi energy minister to speculators raised the prospect of further OPEC+ output cuts.

Brent crude futures rose 88 cents, or 1.2%, to $77.72 a barrel by 0837 GMT, while U.S. West Texas Intermediate crude (WTI) gained 98 cents, or 1.3%, to $73.89 a barrel.

Saudi Arabia’s energy minister said short sellers – those betting that prices will fall – should “watch out” for pain.

Some investors took that as a signal that the Organization of Petroleum Exporting Countries and allies including Russia, also known as OPEC+, could consider further output cuts at a meeting on June 4.

“Oil prices are trading higher…buoyed by the latest short-seller warning from Saudi Arabia,” said OANDA market analyst Craig Erlam.

“(But) if past experience is anything to go by, traders may be tempted to call his bluff.”

Also boosting oil prices was industry data which showed that U.S. crude oil and fuel inventories fell sharply.

This report’s information was first seen on REUTERS; to read more, click this link.