Oil Bets Drop As Saudis Warn Speculators

Last week, the top energy official of Saudi Arabia warned short sellers to be careful. Traders of Brent oil took note.

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Brent had a big boost in net-long holdings by money managers. They added over 30,000 contracts last week, which was the largest increase in almost two months. It happened because they reduced their bearish bets and made new bullish ones.

The Energy Minister of Saudi Arabia talked at a forum. He said that speculators should be careful. The Minister warned those who bet against the oil market. They will be left feeling pain. The OPEC+ group will meet on June 3-4. They will talk about their output policy.

In April, the producer group made a surprise by reducing production. However, traders continued to make negative bets on oil.

People who bet on the diesel price going down decreased their bets a lot. This is big news because these bets were big compared to other oil markets. The last time this happened was in August 2021.

The Saudi energy minister has issued a warning to those who speculate in oil. He has said they should be careful because things might not go as they expect. His message comes at a time when energy prices are high. Some people believe that speculation is driving the price of oil up. This can make it difficult for countries to balance their budgets. The Saudi government has been trying to keep oil prices stable. They don't want to see them rise too much or fall too little.

The head of OPEC warns that not enough money is being put into the oil and gas industry, which could lead to unstable markets. This lack of investment may cause a supply shortage, driving up prices. An increase in prices could negatively affect the global economy. To avoid this, the industry needs more investment.

The Saudi minister believes that coordination with OPEC+ is essential to stabilize markets. They consider it a cornerstone for their efforts.