Categories: News

Following Upbeat Saudi Remarks And Declining Us Stocks, Oil Prices Increased

Oil prices increased on Wednesday as a result of data showing tightened US fuel and inventory supplies as well as a warning to speculators from the Saudi energy minister that raised the possibility of additional OPEC+ output restrictions.

By 08:37 GMT, Brent crude futures had increased by 88 cents, or 1.2 percent, to $77.72 per barrel, while US West Texas Intermediate crude (WTI) had increased by 98 cents, or 1.3 percent, to $73.89 per barrel.

The oil minister of Saudi Arabia warned short sellers—those who wager that prices will decline—to “watch out” for suffering.

Some investors interpreted that as an indication that the Organisation of Petroleum Exporting Countries and Allies, generally known as OPEC+, may contemplate additional output restrictions at a meeting on June 4. OPEC+ includes allies such as Russia.

Industry data that showed a large decline in US crude oil and fuel inventories helped to raise oil prices as well.

According to data from the American Petroleum Institute (API), market sources estimate that crude stockpiles decreased by 6.8 million barrels last week. Stocks of petrol decreased by roughly 6.4 million.

If the Energy Information Administration’s (EIA) data, which is expected on Wednesday, supports these estimates, US petrol inventories would have decreased for a third week in a row to their lowest levels prior to Memorial Day since 2014.

Memorial Day weekend, which falls on May 29 this year, generally ushers in peak summer travel season and increasing fuel demand.

Another round of debt ceiling negotiations came to an end on Tuesday with no sign of progress, putting pressure on global markets as the deadline to raise the government’s borrowing limit or risk default approached.

The ongoing impasse in the United States over lifting the debt ceiling has soured investor confidence in recent weeks.

Prince Abdulaziz bin Salman, the energy minister for Saudi Arabia, issued a fresh warning to traders on Tuesday against shorting oil futures, less than two weeks before the June 4 meeting of the OPEC+ panel on production policy.

The most significant oil official in the top crude oil exporting nation’s remarks sparked concern that OPEC+ ministers may once again shock the markets when they gather in early June.

Energy merchants have rapidly discovered that you should “Don’t fight the Saudis” when it comes to oil pricing since they will do anything it takes to defend prices.

Bottom Line

Investor confidence has recently declined as a result of the protracted standoff in the United States over raising the debt ceiling.

Less than two weeks before the June 4 meeting of the OPEC+ panel on production policy, Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, again warned traders against shorting oil futures on Tuesday

The statements of the top oil official in the largest exporter of crude oil raised fears that the ministers of OPEC+ may again shock the markets when they meet in early June.

Energy traders quickly learned that it is best to “Don’t fight the Saudis” when it comes to oil pricing since they will go to any lengths to protect prices.

Recent Posts

Is BambooHR Pricing Suitable For Large Enterprises?

In today's business world, the significance of human resources management practices is highlighted for achieving…

18 hours ago

Princess-Style Dress that Every Girl Couldn’t Miss

Princess-style dresses have caught the eyes of fashion enthusiasts for numerous years. From prom nights…

20 hours ago

Affordable Cremation Services Near Me: Tips and Resources

Losing someone close to oneself is unbearably hard, and making arrangements can also seem very…

3 days ago

Electric Transfer Switch: A Silent Guardian for Reliable Power

The importance of an electric transfer switch is frequently underestimated in the overall operation of…

3 days ago

Streamlining Payroll Management Across Borders

Key Takeaways: 1. Efficient payroll management across borders is crucial for global business operations. 2.…

3 days ago

Business Storage Solutions: How Self-Storage Can Help Your Growing Business

As businesses grow, the need for additional space often becomes a pressing issue. Finding enough…

3 days ago