FX.co ★ Global macro overview for 28/12/2017

It will take about a week to repair the damaged infrastructure in the Es Sider terminal after the explosion of the oil transporting pipeline in Libya last Tuesday. Oil production in Libya fell by 12.0% below 1 million barrels per day to 950 thousand bpd. Before the gas pipeline explosion, the crude oil production was 1.08 million bpd. Loading of oil in Es Sider dropped by 50.0%, and this month it was expected to load the raw material for 13 tankers, each for 600,000 barrels of oil.

On the other hand, the US received information that oil stocks fell last week. The American Petroleum Institute reported that inventories decreased by 5.96 million barrels. Today, market participants will receive another inventories data from the US Department of Energy (DoE) at 03:30 pm GMT. Analysts expect a drop in US oil stocks of 3.90 million barrels after another drop last week of 6.48 million barrels. Market participants can expect a slight decline in quotations and then a stable level, because despite the fact that the US oil stocks are declining, the price growth may halt the higher shale oil production in the US .

Let's now take a look at the Crude Oil technical picture at the H4 time frame. The market is still hovering around the level of $60.00 in overbought trading conditions. The nearest technical support is seen at the level of $59.04 and it looks like it might be tested soon. As long as the golden trend line is not violated, the trend remains bullish.