As To OPEC

I suspect the Iranian presidency (in OPEC) along with the situation in MENA had a lot to do with the fact they could not reach a decision.

Yesterday Saudi Arabia said it would act unilaterally and increase production, but we already know that the last time they said that (when Libyan oil went off line) they never actually increased production. It's already proven they have overstated their reserves and may not have the ability to increase production. Furthermore, Saudi Crude is a poor substitute for the missing Libyan Crude, for those who used Libyan crude like Italy, it will take 3 Saudi barrels to get the same equivalent of 1 Libyan barrel due to the heavy sulfur content.

We'll see how USO reacts through the morning.