Global macro overview for 14/10/2016:
After five weeks of decline, an unexpectedly large surplus in crude oil stockpiles was reported yesterday afternoon. Crude Oil Inventories data showed a gain of 4,850k barrels, beating the estimate of just 286k. This was the highest reading since April 2016. Moreover, oil prices are clearly trending higher after Monday's comments from Russian president Vladimir Putin, when he stated that Russia would join the OPEC agreement to cap production levels. This might be an important step towards reaching a final agreement with the other OPEC members at the next cartel's meeting next month.
Let's now take a look at the Crude Oil technical picture on the 4H time frame. The market is still trending higher above $50 mark and there has been no signs of a trend reversal so far. The next support is seen at the level of 49.13 and the next resistnace can be found at the level of 51.58.
