Oil prices rose in choppy trade on Friday, after tumbling nearly 5 percent in the previous session on disappointment that an OPEC-led decision to extend current production curbs did not go deeper.
At Thursday's meeting in Vienna, the Organization of the Petroleum Exporting Countries and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired next month.
Goldman Sachs attributed the sharp drop in oil prices to three aspects of the OPEC deal: lack of deeper cuts; failure to impose production caps for Libya and Nigeria, which are exempt from the reductions; and the absence of "a clear exit strategy" beyond attempts to manage seasonal stockpile builds in the first quarter of 2018.
Investor positioning and technical trading also played a roll in the acceleration in selling on Thursday, as oil prices fell through 50- and 200-day moving averages, the investment bank said.