Global macro overview for 04/04/2016:
Oil has been in decline once again overnight as on Friday, traders continue responding to reports that Saudi Arabia may not be willing to take part in the price freeze without all other major producers, both OPEC and non-OPEC. Moreover, the Wednesday inventories data was much worse than expected. The market participants anticipated 3.1M of stockpiles, a small raise from 2.3M last week. The figures released were at the level of 9.4M oil barrels. In conclusion, the US is running out of the inventory space to storage oil, and Iran is still hesitating to freeze the production after the sanctions have been removed. In that case, there is still room for lower prices in oil market.
Let's now take a look at the technical picture of crude oil in the daily time frame. We can clearly see the oil fell out from the golden rising channel and currently it is trading below the 21DMA. It is hard to say whether bears are now fully in control over this market, but if support at the level of 34.94 is violated with a daily candle close below it, then the chances for a sell-off are high.
