Global macro overview for 17/11/2016:
The Crude Oil Inventories data released yesterday revealed another rise in the stockpiles. Market participants expected a decrease this week from 2432k barrels to 1267k barrels, but the figure revealed was at the level of 5274k barrels. Meanwhile, OPEC members will assemble again on November 30th in Vienna and will try again to agree on a cap in production to stabilize oil prices. Nevertheless, there are serious doubts whether the agreement will be reached as Qatar, Algeria, and Venezuela are working behind the scenes to reach a consensus. If there is no agreement again, the prices might fall even more.
Let’s now take a look at the Crude Oil technical picture in the 4H time frame. Despite the increase in stockpiles, the price managed to get back into the dashed blue channel and violate the important technical resistance at the level of 45.92. Currently, the price is moving sideways, but if the technical support at the level of 45.04 holds, then the relief rally will gather momentum and might even test the level of 48.21 (61%Fibo) before reversing.
The material has been provided by InstaForex Company – www.instaforex.com