Global macro overview for 31/12/2015:
Crude Oil Inventories data were released yesterday and the data on a surplus of 2.6 million barrels surprised the market, which had expected a loss of 1.8 million barrels. The US and OPEC continue to oversupply the markets and oil-producing nations are pumping out oil at high levels. Please notice, that earlier in December, crude dropped below $35, which is its lowest level since February 2009, and according to the latest report of the OPEC, prices might drop even further towards $20 before any meaningful reversal takes place. Moreover, the triple- digit oil prices might not be seen for years.
Oil is trading just above the technical support at the level of 36.55. The next resistance is seen at the level of 38.17.
The material has been provided by InstaForex Company – www.instaforex.com