Global macro overview for 11/07/2016:
The crude oil production in the USA decreased to the lowest level since May 2014. The Energy Information Administration report showed, that the US oil production slipped 194K barrels a day to 8.43M in the week ended July 1. Moreover, the output decreased 12% from June 2015, when the prices of crude oil were above $60 a barrel. The US oil production looks weak, but so far a decline in stockpiles was only moderate. Nevertheless, this situation can be changed very fast if drillers keep returning rigs to their fields as the number of active oil rigs in the US increased in five of the past six weeks.
Let's now take a look at the crude oil technical picture in 4H time frame. The price is trading below the 55, 100, and 200 moving average and recently another lower low in the sequence was made as well. Currently, the most important level is the technical resistance at the level of 45.83. If the bull camp is too weak to violate this level, the next support is seen at the level of 43.18.
