FxGrow Daily Technical Analysis – 05th Jan, 2017 By FxGrow Research & Analysis Team Oil Plunges Over Doubts of OPEC Allocated Quotas Commitment, Awaiting US Inventories Crude oil started 2017 with a significant rally reaching 56.22 March-2015-fresh-highs following 2016 finale as OPEC reaches final decision regarding allocating shared quotas by OPEC and NON-OPEC cartel producers. Oil prices bulls were under one condition, monitoring production shares as decided without cheating, although doubts were aroused on how far the members will stick to the so anticipated OPEC-deal taking previous history of non compliance. The first domino stone that fell was the Kurds after comments by Iraqi oil minister Haider Al-Abadi delivering on late-Tuesday, citing that the Kurdish region was exporting more than its allocated share of oil as the country seeks to abide by OPEC output cut deal that kicked-in on Jan 1. Iraqi PM noted, “The region is exporting more than its share, more than the 17 percent stated in the budget.” Under the terms of the 2017 budget, which passed despite a boycott from a key Kurdish party, the autonomous region is allocated 250,000 bpd exports from oilfields under its control. Other Rumors on CNBC livesquawk Russia will not start oil cuts until they see proven actions by OPEC. Yesterday, The American Petroleum Institute (API) has reported a sizable draw on U.S. crude oil inventories, down 7.4 million barrels over the previous week—a much larger draw that expected, and the fifth draw in seven weeks. Analysts expected a draw of around 1.7-2.2 million barrels for the week, and right ahead of the API data dump, oil prices responded upwards nearly 2 percent, in anticipation of a draw on a smaller scale. Crude oil prices has entered a vague tunnel with too many factors affecting oil levels. 1- OPEC and Non-OPEC cut production. 2- OPEC and Non-OPEC commitment and compliance to allocated oil production Quotas. 3- US crude inventories that will be published today at 4:00 PM GMT will either support oil bulls or add further losses to price levels. If OPEC and Non-OPEC cartels combined their efforts respecting cut production with further monitoring, then we will witness new high levels at 2017. Trend: Sideways Resistance level : R1 53.84, R2 55.20, R3 56.81 Support levels : S1 52.41, S2 51.74, S3 50.92 Remark : look forward for US crude inventories today scheduled for a release at 4:00 PM GMT. For more in depth Research & Analysis please visit FxGrow. Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.