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OPEC+ Forecasts Supported Oil Quotes

9/14/2022 2:11 PM

The price of North American WTI Crude Oil is correcting the uptrend at 86.52.

Against the background of the discussion of the initiative proposed by the G7 and partners to introduce a ceiling on prices for Russian oil, experts and officials are making more and more new assumptions regarding restrictions. Yesterday, Bloomberg described the situation that could arise around the transportation of energy resources through the Danish straits: the EU proposes to introduce a ban on insurance services and the provision of foreign pilots, and the Danish maritime department practically obliges all ships to take on board a local specialist, and failure to comply with these decisions can eventually completely block the passage of tankers on this segment.

As for the positive impact on quotes, it became possible after the Organization of the Petroleum Exporting Countries (OPEC+) maintained its forecasts regarding the demand for "black gold": this year, the figure is expected to be at 3.1M barrels, and in 2023 – at 2.7M barrels, while the total volume of world demand can reach 102.7M barrels, exceeding the values ​​of 2019. According to the cartel, positive dynamics will be ensured by restoring the air transportation market and transport activity. As expected, the key importers of oil during this period may be the countries of Latin America.

On the daily chart of the asset, the price is falling within a dynamic downward channel, approaching the resistance line. Technical indicators confirm the high probability of corrective growth: fast EMAs on the Alligator indicator began to actively approach the signal line, narrowing the range of fluctuations, and the AO oscillator histogram forms ascending bars, approaching the transition level.

Resistance levels: 89.11, 94.20. | Support levels: 84.62, 80.83.

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