Global macro overview for 09/09/2016:
The record drawdown in U.S. crude oil supplies was recorded as storms disrupted ships bringing foreign oil to U.S. refineries. According to the latest data, the stockpiles drawdown were at the level of -14,513 mln barrels, way above the market expectations of -83K barrels. Due to this unfortunate event, the crude oil prices are 7% up for this week, at $47.02 at the time of writing. Moreover, the Barker Hughes U.S. Oil Rig Count data are scheduled for release today at 05:00pm GMT and it is worth mentioning that the rig count has risen by nine for the last 10 weeks. If we get another better than expected number of oil rigs, the crude oil prices might turn around due to the fact, that oil producers might go back to the oil fields and increase supply even more.
Let's now take a look at the Crude Oil technical picture in the 4H time frame before the news is published. After the surprising news yesterday, the bull camp has managed to break out above the technical resistance at the level of 46.51 (now support) and headed towards the next technical resistance at the level of 48.44. Nevertheless, the rally was capped just below the golden trend line and the growing bearish divergence between the price and the momentum oscillator suggest more declines in prices to come any time now.
