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Brent Crude Oil is Waiting for India's Decision

9/8/2022 3:34 PM

Brent Crude Oil is correcting slightly above 88.00 after losing significantly yesterday amid forecasts from the Energy Information Administration of the US Department of Energy (EIA), as well as due to India's possible entry into the ceiling level discussion of the oil price.

As Deputy Secretary of the Treasury Wally Adeyemo told Bloomberg, the Indian authorities are currently studying the initiative of the G7 members, which, also to limited pricing, involves a ban on the insurance of ships transporting Russian oil at a higher cost. Investors fear that if restrictions are approved by the key buyer of oil from the Russian Federation, the demand for resources may decrease significantly, which will undoubtedly affect the price. We also recall yesterday's statement by Russian President Vladimir Putin, who stressed that no oil would be supplied to countries that supported the decision to introduce a marginal cost level.

Another negative scenario was announced yesterday by the Energy Information Administration of the US Department of Energy (EIA), lowering the average price forecast for both oil grades until the end of 2022. For the current year, the target price for Brent Crude Oil has been adjusted to 104.21 dollars from 104.78 dollars, and for WTI Crude Oil from 98.71 dollars to 98.07 dollars. EIA will publish its report on weekly stocks today, and if it confirms the American Petroleum Institute (API) analytics, the pressure on quotes will increase. Recall that yesterday. The API reported an increase of 3.645M barrels against the forecast of 0.733M.

On the daily chart, the price is moving within a downwards corridor, gradually approaching the support line. Technical indicators maintain a stable sell signal: fast EMAs of the Alligator indicator are moving away from the signal line, and the AO oscillator histogram is forming down bars in the sell zone.

Resistance levels: 91.53, 98.82. | Support levels: 86.85, 79.95.

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