Global macro overview for 13/11/2015:
Even the OPEC remarks about increasing oil demand was not enough for the price to hold the $42 handle and market fell to the 41.35 level yesterday. The reason for the sell-off was crude inventories data that showed higher-than-expected numbers again. The markets expectations were a slight decrease in stockpiles to the level of 1300K barrels from last weeks 2847K barrels, but instead the stockpiles rose to the level of 4224K barrels. Saudi Arabia will be facing a serious economic problems if the situation continues and the IMF has suggested deep structural reforms might be needed.
The crude oil rebounded slightly after yesterday's drop, but is still trading under the technical resistance at the level of 42.58. The next support is seen at the level of 39.89.
