(Bloomberg) -- Saudi Arabia’s surprise move to cut 1 million barrels a day of its own output has emboldened markets bulls, while the kingdom’s ominous warning on short-selling seems to have sent some bears into hiding.

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Hedge funds boosted bullish bets on Brent and WTI crude in the week ended June 6, with long positions on the global benchmark reaching a six-week high. At the same time, money managers unwound bearish bets. The shift comes as Saudi Arabia pledged to cut output to “stabilize” the market, shorthand for halting a price slump. Prior to that, Saudi Energy Minister Prince Abdulaziz bin Salman warned that speculators betting on falling prices better “watch out.”

In the lead up to last weekend’s OPEC+ meeting, non-commercial players such as hedge funds had amassed the most bearish stance in over a decade across major oil contracts such as crude, diesel and gasoline. Despite the output cuts, oil prices have failed to rally as investors remain focused on the global economic outlook.

--With assistance from Julia Fanzeres.

(Adds CFTC data on US crude positioning)

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