Due to Saudi Arabia's Warning to 'Short Sellers', Oil Prices Rise!


 Crude oil traded at three-week highs following a warning from Saudi Arabia's energy minister that raised the prospect of an upcoming OPEC+ production cut.

In the Asian session, Brent crude oil futures traded higher at $78 a barrel, while US WTI traded little changed at $74 a barrel.

On Tuesday, Prince Abdulaziz bin Salman said 'short sellers' who bet oil prices will fall need to be aware of the consequences.

The warning was seen by markets that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, called OPEC+, will consider further production cuts at a meeting on June 4.

This has helped the black commodity to trade higher amid continued uncertainty over the US debt ceiling issue.

Meanwhile, data from the Energy Information Administration (EIA) showed a surprise drop in US crude oil inventories of 12.5 million barrels last week compared to expectations for an increase of 800,000 barrels.

The EIA added that US gasoline stocks fell by 2.1 million barrels in a week to 216.3 million barrels, while distillate stocks fell by 600,000 barrels to 105.7 million barrels.