Why WTI and Brent fall drastically on Friday after a huge a surge?

(edited)

I am new to this forum and new to Crude oil trade. Started since June 2018. Mostly I trade in WTI and Brent.

One of the things surprises me on Friday that OPEC has cut the production and Inventory report is negative for Crude.

So technically wti Crude should fly to 56-58 range but it happens exactly reversed it went till $54 and then till $52.14.

Any specific reason for this fall?

 

If somebody please enlighten me would be helpful.

Edited by debaion

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Hi @debaion

In my opinion this negative end to the week in spite of the OPEC deal and the initial spike upwards after its anouncement was due to:

- Russia stating that it may take months before they actually comply with the targets (and the assumption that other producers may well do the same)

. an overiding concern about declining demand as a result of a turndown in global economic progress due to the existing trade war situation between US and, primarily, China.

- an added concern about souring relations between China and the US following the arrest of the Chief Financial Officer of  Huawei in Canada

- a weakness in stock values.

- a conviction that whatever cuts are made will be at least partially taken up by the record production levels in the US, which show no signs of abating. The US was a net exporter of oil now for the first time in a long while………..

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