Global macro overview for 12/09/2018
The Russian Minister of Energy, Aleksander Novak, announced that he would like to discuss the possibility of cooperation with the United States. He believes that the energy agreement between these countries is important for the stability of the global economy. According to Novak, the crude oil market is still very sensitive to news, it is mainly the fault of geopolitical factors. The market behavior should still be observed. The June decision of OPEC on the increase in the supply of raw material was a good choice. Novak also announced that Russia has the potential to increase production by another 300,000. barrels a day in the next 12 months. It does not exclude that the price of oil may fall in winter due to lower demand. All supply decisions will depend on market needs. Brent crude prices have gone up in the last hours, currently, it is around USD 79 per barrel.
Let’s now take a look at the Crude Oil technical picture at the H4 time frame. The price has broken above the technical resistance (now support) at the level of 69.58 and made a local high at the level of 70.05. The low at the level of 66.80 might be considered as a higher low, which might suggest the uptrend to resume soon. In order to continue higher, the market should break through the swing high at the level of 71.40 and head towards the level of 71.69 and 72.13. Please notice, the momentum is strong and positive, so it supports the current bullish outlook.