Hedge funds have upped their bullish bets on oil following Saudi Arabia’s surprise move to cut one million barrels a day of its own output in a bid to "stabilise" the market, according to a report by Bloomberg.

Hedge funds have upped their bullish bets on oil following Saudi Arabia’s surprise move to cut one million barrels a day of its own output in a bid to "stabilise" the market, according to a report by Bloomberg.

The move seems to have emboldened investors, with bullish bets on Brent and WTI crude reaching a six-week high in the week ended 6 June, while bearish bets have been unwound.

The shift comes after Saudi Energy Minister Prince Abdulaziz bin Salman issued an ominous warning saying that speculators betting on falling prices better “watch out.”