Global macro overview for 11/02/2016:
Even yesterday's lower-than-expected crude oil inventories data (2400k vs. 3800k expected) did not help the oil to stop and reverse amid the supply glut persisting in the global market. Moreover, it does not look like it is going to improve anytime soon. The Chinese slowdown has pushed oil prices sharply lower, as the Asian giant is the world's second largest consumer of petroleum. The International Energy Agency downgraded its forecast for oil demand and noted that the global oversupply will continue for most of 2016. In conclusion: low oil prices continue to contribute to the financial turmoil around the globe, and the outlook for oil is likely to stay negative.
From the technical point of view, the situation does not look any better as well. After rejecting at the resistance level of 29.23, bears have completely regained control and now the price is heading lower to test this year's low of 26.06. This level is likely to be broken and next round number of $25 should be the one to keep an eye on.
