Global macro overview for 16/03/2016:
The American Petroleum Institute report regarding its inventory levels of US crude oil, gasoline and distillates stocks revealed lower than expected build in inventories. The market participants expected the gain of 3 400K barrels this week, down from 4.400K barrels last week, but the number revealed was 1 500K barrels only. Oil prices are also being carefully monitored by the Federal Reserve and other central banks, as developed economies continue to grapple with ultra-low inflation levels, fueled by the collapse in oil prices. In conclusion, this is somehow encouraging sign of increased short-term demand for oil, but it is still not enough to tame the oversupplied global oil market
Let's now take a look at the technical picture of the crude oil on the daily chart. The market was rejected at the 39.50 resistance level and then, broke out below the golden trend line signaling a possible short- term bull trend exhaustion. Nevertheless, it is still trading above the 21,50 and 100 daily moving average, so the bulls might take the control again any time soon. Only a sustained and clear break out below the support at the level of 36.08 would change the situation as more favorable for bears.
