Global macro overview for 22/09/2016:
The Crude Oil Inventories data surprised global investors once again yesterday. Investors anticipated a nice build in the stockpiles up to the level of 2250k barrels after a drawdown of -559k barrels last week, but instead of that domestic inventories decreased to -6,200k barrels. The reason behind this huge contraction may lead to a leak in a gasoline pipeline occurred in Alabama last week, sparking a panic in the Eastern U.S. about possible fuel shortages. In the other news, Russian Federation Energy Minister Alexander Novak said that Russia is willing to discuss measures with other oil producers at the nearest OPEC meeting in Algeria on 26-28 September. He said it is only a proposal to freeze output, but he hopes for constructive talks in Algeria both with OPEC and non-OPEC producers.
Let's now take a look at the Crude Oil technical picture in the 4H time frame. The market is currently trading above all moving averages, but still below the technical resistance at the level of 46.53. The current trend is still down and the sequence of lower highs and lower lows supports this view.
