Saudi Energy Minister Warns Oil Short Sellers 'They Will Be Ouching' Ahead Of OPEC+ Meeting
Portfolio Pulse from Piero Cingari
Saudi Energy Minister, Prince Abdulaziz bin Salman, warns oil speculators to exercise caution ahead of the OPEC+ meeting in June. Speculators have recently increased their short positions in crude oil futures, which could lead to a short squeeze if OPEC+ enacts unexpected supply cuts.

May 23, 2023 | 2:46 pm
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NEUTRAL IMPACT
The United States Oil Fund (USO) could be impacted by the upcoming OPEC+ meeting, as a surprise tightening in oil output could lead to a short squeeze and an initial positive impact on crude prices.
The United States Oil Fund (USO) tracks the price of WTI-graded oil, which is closely related to the trend in CFTC net speculative positions. If OPEC+ enacts unexpected supply cuts, it could lead to a short squeeze, impacting crude prices and, in turn, USO. However, the outcome of the OPEC+ meeting is uncertain, so the short-term impact on USO remains neutral.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80