Global macro overview for 14/11/2016:
The market is not convinced that OPEC and non-OPEC members will reach an agreement to cut output at its November 30 meeting in Vienna. On Friday, OPEC said its output hit a record +33.64 million barrels per day in October and forecasted an even larger global surplus next year. This forecast was also confirmed by International Energy Agency. The IEA anticipates that in 2017 the global oil market will still struggle with the persistent supply growth, similar to 2016, and there's little evidence to suggest that economic activity is robust enough to deliver higher oil demand growth.
Let's now take a look at Crude Oil technical picture in the 4H time frame. Crude oil prices continue to hover near their three-month lows on concerns of another year of oversupply. The market is trading below all of the moving averages and any break out below the technical support at the level of 42.51 will result with another lower low in the sequence and the overall market trend will change from bullish biased to bearish biased.
