Global macro overview for 09/02/2017:
The Crude Oil inventories data released yesterday had surprised the market participants. The expected number of 2.7m barrels had been easily beaten by huge 13.8m built up in stockpiles. Moreover, an EIA report upgrading the 2018 output forecast to 9.53m barrels from 9.3m barrels per day projected in January probably did not help matters either. Most of the analysts said the prices could be volatile as higher US crude supplies offset output cuts by the Organization of the Petroleum Exporting Countries (OPEC) and other producing nations.
Let's now take a look at the Crude Oil technical picture at the H1 time frame after the data was released. The market rallied towards the next intraday resistance at the level of 52.79 and the bull camp has managed to break out above it. Currently, the price is trading just below the intraday resistance at the level of 52.90, but the market conditions seem to be overbought. In the case of a further break out higher, the next resistance is seen at the level of 53.14.
