Oil nears $50 in technical breakout
OPEC is increasingly worried that countries are flouting quotas and will meet with non-OPEC countries as soon as next week to discuss weak compliance, according to Bloomberg.
Signs of a breakdown in the cartel are oil-negative but it doesn't matter to crude traders at the moment. WTI crude is up 69-cents to $49.73 -- the best since May 31.
A big reason for the climb is talk about Venezuelan sanctions. Tighter inventories are also helping.
Whatever the reason, the technicals are looking increasingly strong. In today's rally, the 200-day moving average and the downtrend since April were both broken. If crude can close above, and especially if it can close above $50, then the outlook is good from here.
