FX.co ★ Global macro overview for 26/05/2016

Global macro overview for 26/05/2016:

The Crude Oil Inventories data from yesterday revealed a drop, posting the biggest weekly decline in seven weeks. Market participants expected stockpiles to decline to the level of -2500k barrels from 1311k barrels a week ago, but the decline was way bigger than expected, down to the level of -4226k barrels. Moreover, a series of outages around the world, such as wildfires in Canada and a spate of violence in Nigeria, the oil-producing region, has helped cut global oil supply by nearly 4 million barrels per day this month. In conclusion, a big down drawn in oil stockpiles might suggest a further price recovery towards $50/barrel and more.

Let's now take a look at the Crude Oil technical picture in the 4h time frame. From the level of $35.23 the market is controlled by bulls and they have managed to push the prices to the level of $50 per barrel. The series of higher highs and higher lows supports the bullish outlook. Moreover, the market is still trading above the 55, 100 and 200 moving average. So far a well done price recovery from 12 years old low.