The WSJ ran a front-page story on OPEC on the weekend and if you’re unfamiliar with OPEC it reads like a dramatic exposé on cartel that’s coming apart at the seams.
If you are familiar with OPEC this is nothing new. It’s a cartel in name only and every country in it does whatever it wants. Quotas are routinely flouted. I think the only reason OPEC still exists is so the oil ministers can go to the best restaurants in Vienna.
But oil traders are lemmings and if a newspaper article can stoke some momentum, then everyone piles in. Plus, the market is extremely delicate at the moment and oil is teetering. Watch out for declines on Monday.