By Srinivas Chowdary Sunkara // petrobazaar // 24th Dec, 2018.
Brent closed down at $53.82, a fall of 53 cents and WTI settled down at $45.59 pulling down by another 29 cents on Friday. Both the crude markers closed with a weekly loss of around 11 percent, biggest fall since the third quarter of 2017. It is clear that the Falls were exaggerated by thin trade as the people are fleeing the positions in the run up to Christmas.
Although global over supply and economic slowdown keep the market under check, Crude lost ground by losing more than a third of its value for last three years. It seems that the markets were not convinced on the strong advocacy of the OPEC to execute the proposed cuts. Do you know why? . I will tell you. OPEC starts cuts, Oil price rises. Suddenly OPEC feel that $60-$70 price range is fine and accidentally starts produce more than says. Eventually markets collapse after knowing that producers were cooking the books. Again convene the meeting to announce the cuts. It goes on. Adding to the concern, U.S drillers added another 10 nos of oil rigs as per Baker Hughes. Asian markets markets opened flat today. Have a good day and Happy Christmas.
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