Global macro overview for 24/02/2016:
The world's top oil executives met in Houston this week to talk about future and current situation in the oil market. The crude oil retreated lower after remarks from Saudi Arabia oil minister Ali Ibrahim Naimi that the current agreement between Organization of the Petroleum Exporting Countries (OPEC) and Russia does not include reducing production. The OPEC Secretary General had earlier blamed non-OPEC producers, in particular U.S. shale companies. Moreover, the release of U.S. oil inventories tomorrow will add more downward pressure to oil prices if the expected rise of 3.2 million barrels materializes. In conclusion, the crude oil supply glut still exists, and neither OPEC nor any other country wants to reduce the production to tame the oversupplied oil market.
Now let's take a look at the crude oil technical picture. The market has made the double bottom at 26.06 and now it is struggling to break out above the 2009 lows at 33.26. Currently, the price is down back to the range, and it looks like the bears are still in full control of the market. The next support is seen at 28.66.