Global macro overview for 14/09/2016:
Two interesting reports for oil market have been released this week, one from International Energy Agency (IEA) and the second one from OPEC. In their report, IEA indicated, that the oil oversupply could extend into the middle of 2017, which is a complete 180 degrees turnaround from its report a month ago where IEA projection showed no oil surplus for the rest of the year. Moreover, the OPEC organization released a report on Monday that indicates the oil glut to continue into 2017 due to an increase in production from non-OPEC members, which supports the IEA projections. In conclusion, the global oil oversupply continues and investors worldwide will keep an eye on the US crude oil inventories reports (2.8k vs. -14.5k prior) that is scheduled for release today at 14:30 GMT.
Let's now take a look at the crude oil technical picture on the H4 time frame. As we can see the bull camp wasn't strong enough to break out above the swing high at the level of 48.70 and the price got rejected at the level of 47.77. This level will now act as a key resistance, together with the level of 46.53. The market is currently testing the golden trend line support around the level of 45.00 as it awaits the data release.
