Global macro overview for 26/04/2016:
The API Crude Oil Inventories data is scheduled for release today at 08:30pm GMT and the expected number of stockpiles is at the level of 3,100K barrels. The drop in oil prices has influenced most of the countries that relay mostly on crude oil export ( Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Oman, and Kuwait). According to the new IMF report, altogether those countries have lost $390 billion in revenue due to weak oil prices in 2015 compared to a year earlier, and that figure could become even higher to $490 billion and $540 billion compared to 2014. In conclusion, all of the Middle Eastern Gulf states are now desperate to find other ways to raise revenue and keep their economies at least at the current levels. The global oil supply glut is still weighting on oil exporters and it still is unsolved problem.
Let's now take a look at the crude oil technical picture in the 4H time frame ahead of the data release. The weekend gap was filled as the market was slowly decreasing towards the support at the level of 42.92. Please notice that the overall trend remains slightly bullish as higher high and higher lows have been made since the February bottom. As long as the level of 39.85 is not clearly violated, bulls are still in control over this market.
