Iran and Iraq quotas punted until Nov 30 meeting

Positive murmurs from the OPEC technical meetings in Vienna yesterday sent oil 4% higher but fresh worries today have nearly halved that gains.

WTI crude is down 1.6%, or $76-cents , to $47.47 after touching as high as $49.20 in early US trading.

The latest leg down came after Bloomberg reported that issues related to Iran and Iraq were deferred until the main meeting on Nov 30.

Technically, oil failed at almost the precise level I outlined yesterday when I wrote that oil is headed to $49, but what happens next is key.

The gap on the chart is now filled but the turnaround is worrisome and suggests a range in the $46-$49 zone until Nov 30 or until there is more clarity on the likelihood of an OPEC deal.