Global macro overview for 08/07/2015 - Crude Oil Inventories

Crude oil inventories data is due at 2:30pm GMT today. The previous reading of 2386k barrels is expected to be challenged with an estimate of -750k barrels. In case of any positive number (more than 0) the recent 2-week sell-off might continue even below the level of 50.00. Other factors that affects the current decline in crude prices are investors flying to safe heavens as concerns about near-bankrupt Greece and Chinese stock market possible bubble crash weigh on prices. Moreover, Iran is still trying to bring more of its oil to the already oversupplied market by sealing the nuclear deal with the global powers adding fuel to the fire as well.

The daily chart represents a possible morning star candlestick formation just on the 50%Fibo level support. Any invalidation of this pattern (a daily candle close below the last candle close) will be considered very bearish in the context of crude prices.