{"id":5610,"date":"2023-05-24T13:33:13","date_gmt":"2023-05-24T13:33:13","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=5610"},"modified":"2023-05-24T13:35:57","modified_gmt":"2023-05-24T13:35:57","slug":"oil-prices-up-after-bullish-saudi-comments-falling-u-s-stockpiles","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/5610\/","title":{"rendered":"Oil prices up after bullish Saudi comments, falling U.S. stockpiles"},"content":{"rendered":"
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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.<\/p>\n\n\n\n

Brent crude futures rose $1.09, or 1.42%, to $77.93 a barrel by 1048 GMT, while U.S. West Texas Intermediate crude (WTI) gained $1.14, or 1.56%, to $74.05 a barrel.<\/p>\n\n\n\n

Saudi Arabia’s energy minister\u00a0said short sellers – those betting that prices will fall – should “watch out” for pain.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

“Oil prices are trading higher…buoyed by the latest short-seller warning from Saudi Arabia,” said OANDA senior market analyst Craig Erlam.<\/p>\n\n\n\n

“(But) if past experience is anything to go by, traders may be tempted to call his bluff.”<\/p>\n\n\n\n

Also boosting oil prices was industry data which showed that U.S. crude oil and fuel inventories fell sharply.<\/p>\n\n\n\n

Crude inventories fell about 6.8 million barrels last week, according to market sources citing American Petroleum Institute (API) figures. Gasoline inventories dropped about 6.4 million.<\/p>\n\n\n\n

If data from the Energy Information Administration (EIA), due on Wednesday, confirm these figures, U.S. gasoline inventories would have declined for the third consecutive week to their lowest pre-Memorial Day levels since 2014.<\/p>\n\n\n\n

The Memorial Day holiday in the United States, this year on May 29, traditionally marks the beginning of U.S. peak summer travel and higher fuel demand.<\/p>\n\n\n\n

Weighing on broader markets, another round of\u00a0debt ceiling talks\u00a0ended on Tuesday with no signs of progress as the deadline to raise the government’s borrowing limit or risk default ticked closer.<\/p>\n\n\n\n

Negotiators for Democratic President Joe Biden and Republican Speaker Kevin McCarthy were\u00a0expected to reconvene\u00a0on Wednesday morning, a source familiar with the matter said.<\/p>\n\n\n\n

Price rises were also capped by news that Britain’s stubbornly high inflation rate fell by less than expected\u00a0last month, according to official data that raised the chances of more interest rate hikes.<\/p>\n

Updated on