Oil Remains Curiously Buoyant Despite OPEC's Failed Opportunity in Algiers

Looks like the OPEC Meeting in Algiers in fact, will result in another missed opportunity for Oil producers to show the world that they can implement any sort of discipline at all.

After this morning's knee-jerk, upside reaction to an EIA draw-down in inventory for last week, news emerged that the Saudis and Iranians failed to agree to cap output, which reversed price action from $45.79 to $44.35 (-3.2%) so far.

That said, however, Oil continues to remain in the grasp of a week-long range roughly between $46.25 and $44.25, which is a bit curious to me because this OPEC news should precipitate a much more powerful negative reaction, no?

Bottom Line: Oil remains in a sideways "funk," actually since its mid-June high at $51.67, that my work continues to indicate is part of a larger digestion period of the larger advance from $26.05 to $51.67, and, when complete, should resolve itself in a thrust towards $60.

At this juncture, only a decline that breaks $44.20 AND $43.00 will begin to inflict potentially serious damage to the bullish coil scenario.