Global macro overview for 17/08/2015:
As crude oil prices fell towards a six-years low, another bearish news has been released last week. The US oil rig count added more drilling rigs for a fourth straight week. The US oil production is increasing amid another news from Oman that produced over 1mln barrels of oil a day in July. The oversupplied oil market is being hit from every possible side, indicating that the bearish sentiment might persist amid the end of the summer driving season and the start of refinery maintenance season.
The technical picture of crude oil does not help the bulls at all. The market is trading at the long-term important support at the level of 42.00 and a slight corrective bounce to the upside is possible, but it should not last for long.
The material has been provided by InstaForex Company – www.instaforex.com