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WTI Crude Oil Update: G7 Meet to Discuss Russian Oil Price Cap, WTI Rises


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  • G7 nations meet today to advance an oil price cap on Russian oil
  • OPEC + supply cut rhetoric unable to counter bearish trend and fears of a global slowdown. Key technical levels considered
  • Extreme long sentiment provides contrarian case for continued selling.

Oil slides more than $1 as G7 debate Iran nuclear deal, Russia | Zee  Business



The industrial heavyweights that make up the G7 (Britain, Canada France, Germany, Italy, Japan and the U.S.) are to meet today to sure up plans on a price cap on Russian oil. Britain, being the global maritime insurance hub is eager to get a deal in place to lower the price of oil and reduce Russia’s oil revenue, making it more difficult to fund its “special operation” in Ukraine.

G7 nations are responsible for insuring around 90% of global shipping traffic, meaning that proposed restrictions on such insurance agreements being subjected to a maximum price per barrel of oil, could limit oil prices globally.

The potential price cap has received some criticism from those suggesting Russia can just divert its oil to nations that aren’t signatories to the cap, such as China and India. It has however been reported that China and India, while not part of the G7, would be in favor of cheaper oil prices.


According to the latest Energy Information Administration (EIA), crude oil stocks depleted faster than expected, seeing a drawdown of 3,326 million for the week ended August the 26th, compared to the expected draw of 1.483 million.

WTI Crude Oil Update: G7 Meet to Discuss Russian Oil Price Cap, WTI Rises

Oil prices have shown a long-term downtrend which will come as a much-needed relief to motorists with travel plans during the upcoming Labor Day weekend. Gasoline prices in the U.S. have been seen declining for 11 successive weeks after averaging around $5 a gallon earlier in the year.

WTI prices, while higher this morning, have neared the recent low of 85.75, now trading at 88.40. The downtrend is showing no significant risk to a long-term trend reversal which is helped by lower demand for fuel in the US compared to this time last year. Demand for fuel is 8.6 million barrels a day, down nearly 1 million bps from last year.

The mention of OPEC + cutting supply in response to oil market volatility did little to disrupt the long term trend. Support remains at 85.75 while resistance appears at88.40, 93 and 96.44.

WTI Crude Oil Daily Chart

WTI Crude Oil Update: G7 Meet to Discuss Russian Oil Price Cap, WTI Rises

Source: TradingView, prepared by Richard Snow


Sep 2, 2022 | DailyFX
Richard Snow, Analyst

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    • Yeah, this is insightful but liquidity doesn't only increase the availability of assets for trading and maintenance stable prices but it also spur price action at particular period time and one good reason some exchanges are attracted to users is because of liquidity too.
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    • Hi Skyreach, Thanks for the comment Yep, most charting software does not do it right, this is purely down to the SCALING of computer screens and the software - there is a solution though The perfect way is to find out the scaling for the market you're looking at (they are ALL different) - If you take the SP500 as an example and I think I showed this on my "Are the markets random" thread, the High of Jan 2022 to Oct 2022 was a PERFECT 1 x 1 down angle in terms of Gann - the scaling formula is EXACTLY the same scaling for UP angles Gann angles aren't the be all and end all as they have there limitations but you can use them for certain things - What Gann did was right specific courses for huge amounts of money with confidentiality clauses that explained exactly what the markets were/are doing, those courses have remained hidden from the public, with only a tiny amount of evidence as to what was going on - BUT, Gann was talking about planets and planetary positions on charts in relation to prices and his Gann angles, were approximate planetary lines for the general public to use, not precise, but good enough as the angles are based on %'s of the circle See the following chart: DJIA from 2009 - People would have writen off the 1 x 1 angle after 2011, but look at it in 2022 perfect example of price and time balancing - this is a perfectly scaled chart and angles Notice: the 1 x 1.5 angle (never talked of of published on charting software) it was effective throughout and ran through the 50% level of the "covid" plunge EXACTLY This chart is the DJIA from 1982 to 2000: The 1 x 1 forecast and timed the big 2000 highs, notice the support it provided in 1987+ and notice that the 1.5 x 1 angle ran right though the 50% level of the 1987 crash - in just 2 charts we've seen the 1.5 angle split major crashes precisely and exactly to the 50% level So to come back to your comment about scaling etc and again I've shown this in "Are markets random" thread, but didn't highlight it - If you find a well defined market swing of a number of weeks or months as shown in the chart below - box the swing, split it proportionally into 25%'#s draw angles to intersect those 25%'s as shown = YOU WILL HAVE A PERFECTLY SCALED ANGLE FOR YOUR COMPUTER SCREEN AND CHARTING SOFTWARE  As long as you don't change the scaling on the chart by adding or reducing more price bars etc it will be accurately scaled, you can then COPY the angles and move around the chart - On my charting software I look back over 6 months, if I changed that to say 9 months then the scaling would change and the angles created on the 6 month basis would not be to scale, so as long as i keep the look back to 6 months any angles created will be perfectly scaled etc My software also allows me to view the angle on different timescales without moving it I mentioned planets above Not shown on the chart is the Mars/Jupiter combo at the 2009 low - the SP500 stopped dead at 666.79 points  - the Mars/Jupiter line was at a longitude of 307 degrees on a circle of 360, add 360 to 307 and you get the value of 667 = which was the value in points at which the SP500 "suddenly" stopped dead at and turned around!  This chart proves the conjunction value of mars/jupiter: The first chart is Gann's 1948 Soybeans charts shwoing Mars and Jupiter conjunction at the HIGH Then this is Mars/Jupiter conjunctions in the SP500 from 200 high - not all timings are significant but some are Here's, the trendline as a line from the 2000 high - notice that in 2018 it caught the high around the conjunction date - the thing to consider here is like the 2009 low, PRICE was 2872, the 2018 conjunction was the 8th conjunction since the 2000 high - 8 x 360 = 2880 degrees from the 2000 high = 8 points from perfection As we can see when Mars/Jupiter time and price balanced, the market dropped - only a minor drop in the grand scheme of things, but it did exactly as Gann said it would, trend reversal So although Gann mentioned his gann angles, really was he was saying was "Planetary lines" - which is exactly why when we trade gann angles, they often don't work that well, because we're trading them with the wrong scaling, the wrong reasoning and something else is creating the lines and angle of them, that most people are oblivious to That being said, people can still trade the steeper Gann angles from either the box method of creating them or the proper scaled method of knowing the points per bar figure - markets above the steeper angles often keep on rising  THT
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