The rumours that Saudi Arabia and Russia might decide to increase production caused oil prices to fall to close to 3 % on Friday. Meanwhile; U.S. exports were threatened by potential Chinese tariffs on crude oil and refined products.
Saudi Arabia and Russia have already boosted production modestly, and have indicated they were prepared to increase output at that meeting.
Some investors were surprised when crude oil and other energy products were included for tariffs at a later date, the official Xinhua news agency reported, citing the Tariff Commission of the State Council.
Over the past six months, the United States has exported an average 363,000 bpd of crude oil to China, which along with Canada is the biggest buyer of U.S. crude.
The short term trend is bearish.
A bearish flag formation completed in the H4 chart. The target of the formation is 62.80.
Crude ended the week 64.24 which meets Fibonacci 78.60 %. At the same level, we see the MM 0/8 Main Support.