Global macro overview for 23/03/2016:
A huge build up in the API Crude Oil Inventories data surprised market participants. It was expected that crude oil stockpiles would hit the level of 2700k barrels, up from 1500k barrels a week ago. Nevertheless, it turned out that the inventories were at the level of 8800k barrels, exceeding the market expectations. In conclusions, producers from the Organization of the Petroleum Exporting Countries and non-members are due to meet on April 17th in Qatar to discuss the output freeze and extreme stockpiles levels. The OPEC's secretary general Abdullah al-Badri said on Monday that there is one more country (Iran) that wants to join the other group of producers later in order to freeze production and support prices. Soon we will fond out whether such actions will help to resolve the current supply glut.
Let's take a look at the technical picture of crude oil on the daily chart. After the recent futures contracts rollover last Friday, the oil has made a small gap up to the level of 41.89. Since then, the market trades slowly inside the golden channel and the gap yet needs to be closed. The bulls are in control over this market, but the important resistance at the level of 43.45 hasn't been tested yet.
