Global macro overview for 11/08/2016:
The Crude Oil Inventories data surprised market participants as another build in stockpiles has been made. Investors expected a decrease in inventories down to the level of -1300k barrels, but the number revealed was an increase to the level of 1055k barrels. Moreover, the previous week had an increase in stockpiles at the level of 1413k barrels, so it might suggest, that after some weeks of drainage in inventories, now they are going back to the average, normal levels. Moreover, this might again indicate, that the global supply glut is still a number one problem for oil producers like OPEC. The members of this organisation still can not agree to cut the production in order to prevent the supply coming to the markets. Maybe some kind of agreement will be reached at the next OPEC meeting at the end of the November in Vienna.
Let's now take a look at the Crude Oil technical picture in the 4H time frame. The series of lower highs might be continued after the market had been rejected at the technical resistance at the level of 43.62. Currently, it looks like the bears are in control over the market especially after yesterday's data. The next support is seen at the level of 41.04 and 40.42.
