Looks like the OPEC Meeting in Algiers represents another missed opportunity for oil producers to show the world that they can act with discipline.
After Wednesday morning's knee-jerk, upside reaction to the EIA's inventory drawdown, 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%).
That said, crude oil continues to remain in the grasp of a week-long range, roughly between $46.25 and $44.25, which is a bit curious because the OPEC news should have precipitated a much more powerful negative reaction.
Bottom Line: Oil remains in a sideways "funk" since its mid June high at $51.67, which my work continues to indicate is part of a larger digestion period of the larger advance from $26.05 to $51.67. When complete, that period should resolve itself with a thrust toward $60.
At this point, only a decline that breaks $44.20 AND $43.00 will begin to inflict potentially serious damage to the bullish-coil scenario.
