Global macro overview for 15/05/2017:

Important news regarding the oil industry has hit the newswires this morning. Saudi Arabia and the Russian Federation support an extension of the agreement to reduce oil production by another nine months expiring in March 2018 "under current conditions". Those are the two most influential countries in the oil market as their daily output is around a fifth of the total daily output on the globe. Besides, they hope that more oil producers would join them in cutting when the extension begins in June.

Let's now take a look at the Crude Oil technical picture on the H4 timeframe. Both Brent Oil and WTI Crude Oil hot up over 1.60% immediately after the statement and continue to trade near their intraday highs at $51.88 and $49.02 at the time of writing. The next technical resistance for crude oil is seen at the level of $50.08, which was a very important level before the sell-off occurred. Moreover, just below, there is a 61%Fibo at the level of $49.93, so this zone will be the key level for both bulls and bears. The next support is seen at the 50%Fivo at the level of $48.75.