Jump to content

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


Recommended Posts


  • 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

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 25/03/23 17:38
  • Posts

    • Charting the Markets: 24 March The FTSE 100, DAX 40 and Nasdaq 100 slide on renewed banking woes while EUR/USD, EUR/GBP and GBP/USD drop as the US dollar, gold appreciate due to flight-to-quality flows. Crude oil and copper tumble on recession fears.  Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 24 March 2023         This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.  
    • Market Breakdown | WTI Oil, EURUSD, GBPNZD, EURAUDHere are the updates & outlook for multiple instruments in my watchlist.1️⃣ WTI Oil daily time frame️The market is trading in a long term bearish trend .After the last sharp bearish movement, the market is steadily recovering.Ahead, I see a major horizontal supply area.Probabilities are high, that the next bearish wave will initiate from there.2️⃣ EURUSD daily time frameAfter a breakout of a solid daily resistance, the market is preparing for its retest.Watch carefully the underlined zone and look for buying opportunities from there.3️⃣ EURAUD weekly time frameThe pair is currently approaching a weekly horizontal resistance cluster.Taking into consideration, that the pair is quite overbought, probabilities will be high to see a pullback from that4️⃣ GBPNZD daily time frameThe pair is currently retesting a broken neckline of an ascending triangle . As we discussed earlier, the trend line of a triangle and its neckline compose a contracting buy zone now.Chances will be high that the next bullish wave will initiate quite soon.For Additional confirmation use: Divergence Indicators
    • #CHFJPY: Classic Bearish Setup 🇨🇭🇯🇵   🔻CHFJPY has nicely respected a confluence zone based on a horizontal 4H resistance and a 0.5 retracement of the last bearish impulse.   The price formed a double top pattern on that and broke its neckline.   Probabilities will be high that the pair will drop lower soon. Goals: 141.172 / 140.363  
  • Create New...