Global macro analysis for 21/11/2016:
New York-traded crude oil has been advancing, having logged an over 5-percent weekly gain last trading week. The reason behind this move is the recent comments from Iran, who indicates that it is very possible to sign an agreement on cutting oil supply by OPEC. Iranian Oil Minister Bijan Namdar Zanganeh assessed that it is "highly likely" to reach a consensus by the countries of the cartel, in particular to reduce oil production, as quoted by laims Iranian agency Shana. The statement indicates that Iraq intends to present new proposals for the oil production. This is the point of view of Iraqi oil minister Jabbar al-Luaibi, and it he was cited by "The Wall Street Journal." In conclusion, the next meeting of OPEC and non-OPEC countries on 30th November in Vienna, Austria might be very interesting for global investors and some agreement might be finally done.
Let's now take a look at the Crude Oil technical picture in the 4H time frame. After the bounce from lower low at the level of 42.30, the market rallied to the level of 46.42. Oil is currently trading just under this resistance. The possible target for bulls might be the 50%Fibo retracement of the recent swing at the level of 47.04. In case of a break outhigher above this level, the next resistance is seen at the level of 48.42 (61%Fibo).
