FX.co ★ Global macro overview for 23/05/2016

Global macro overview for 23/05/2016:

Crude Oil Inventories data from last week showed an unexpected increase in stockpiles to 1,310K barrels (-3,500k expected and -3,410k prior). Currently, commodity market participants are preparing for the next OPEC meeting on June 2, where the following issues will be discussed: wildfire in Canada, a sharp drop in Nigerian production due to sabotage, turmoil in Venezuela, Saudi Arabia new oil minister, and Iran refusal to decrease the production output. This is why the unity of OPEC group is now in the spotlight more than ever, as the ongoing direct altercation between Saudi Arabia and Iran is getting more tense. The proposal by Kuwaiti deputy foreign minister Khaled Jarallah for the member nations to freeze production is a feeble attempt to support prices. In conclusion, the meeting with very uncertain outcome might get the oil prices very violate again. It is worth to keep an eye on the meeting conclusion.

Let us now take a look at the crude oil technical picture on the H4 time frame. Another higher high in the sequence has been made with the top at the level of 48.93. The price is still trading above the 21,50 and 100 moving average, above the golden trend line and above the last important support at the level of 46.77. Clearly bulls are in control over this market.