Global macro overview for 26/09/2016:
Crude oil prices on the stock market in New York are rising after the fastest decline in more than two months. The reason behind this advance can be attributed to the Saudis who have proposed to freeze oil supplies to the markets at the level last seen in January of this year. It is an “open gate” to reach an agreement to reduce oil supply by OPEC members. Representatives of Saudi Arabia had already talked with Iran, but after two days of “preliminary” consultations prior to the meeting of OPEC, both sides did not reach any agreement. The Saudis are willing to pump less oil if Iran freezes its supply of raw materials at current levels. In conclusion, all eyes on the final outcome of the informal OPEC meeting on the sidelines of the International Energy Forum in Algeria (September 26-28), where they will discuss a possible deal to limit output.
Let’s now take a look at the Crude Oil technical picture on the 4H time frame. It looks like another lower high has been made just at the recent technical resistance at 46.53. Since then, the market slid down about $2 in an attempt to fill the gap, but has failed and pushed up a little. Currently, the market awaits the outcome of the OPEC meeting, so it trades in the middle of the trading range between the levels of 44.20 – 46.53.
The material has been provided by InstaForex Company – www.instaforex.com