The oil market finished last week on an optimistic note, closing just below the $80 level and threatening to break to the highs since November.

Alas, the dam didn’t break and oil has slumped back to $76.62, finishing at the lows of the week. For most of the shortened week, oil was trading roughly flat but it slumped today, perhaps due to Israel-Hamas peace negotiations in Paris.That’s despite a US weekly oil inventory report that showed some tightness, particularly in products.

US refineries should be ramping up in the weeks ahead and stronger global growth is a tailwind but the main driver right now is OPEC and there are signs that producer discipline isn’t where it needs to be.

This article was written by Adam Button at www.forexlive.com.