2023-05-23 17:45:25 ET
Ten of the 11 S&P 500 sector groups ended Tuesday's trading with declines, with the energy sector ( NYSEARCA: XLE ) finishing alone in positive territory, +1% , as crude oil prices climbed following a warning from Saudi Arabia's top energy official to crude short sellers to "watch out" or they will be "ouching."
Speaking at an economic forum in Doha, Saudi energy minister Prince Abdulaziz bin Salman warned short sellers that they could face another round of pain.
"Speculators, like in any market they are there to stay, I keep advising them that they will be ouching, as they did ouch in April. I don't have to show my cards, I'm not a poker player... but I would just tell them to watch out," bin Salman reportedly said, referring to the surprise production cuts unexpectedly announced in early April, which sparked a short-lived spike in crude prices.
OPEC+ had not previously made any indication it is considering another cut at its next meeting in early June, but no warning came before the April move, " so it pays to be cautious ," said Michael Hewson, chief market analyst at CMC Markets UK.
Front-month Nymex crude for July delivery ( CL1:COM ) closed +1.2% to $72.91/bbl, after initially rising as much as 2.5% on the Saudi minister's comments, and July Brent crude ( CO1:COM ) settled +1.1% to $76.84/bbl.
ETFs: ( NYSEARCA: USO ), ( BNO ), ( UCO ), ( SCO ), ( DBO ), ( USL ), ( NYSEARCA: UGA ), ( DRIP ), ( GUSH ), ( USOI ), ( NRGU )
Gasoline has gained for three straight sessions, with speculators looking for a demand boost as the Memorial Day holiday approaches.
Front-month Nymex RBOB gasoline ( XB1:COM ) for June delivery has climbed 9.39 cents, or +3.6% , in three days, ending Tuesday at $2.6622/gal.
U.S. gasoline inventories "are about as tight they have ever been going into the kickoff of the summer driving season," Price Futures Group analyst Phil Flynn said.
Crude oil will reclaim the $80/bbl level in this year's H2 and could continue rising toward $90 due to a deepening supply deficit caused by OPEC's production cuts and the lack of response from U.S. shale, Bank of America said last week .
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Energy ends as day's only sector gainer after Saudi warning to short sellers