The price of Brent Crude Oil is correcting in a narrow range after $83.77 to $86.02 per barrel.
According to Kpler and Vortexa, India was able to increase exports of diesel fuel and jet fuel to Europe in the fiscal year 2022-23 thanks to record levels of Russian oil imports.
The production volumes and profits of Indian refineries have increased due to access to cheap oil from Russia. This allowed India to increase its supply of petroleum products to Europe and occupy a significant part of the market.
According to Kpler reports, India was supplying approximately 154,000 barrels per day of diesel and jet fuels to Europe until March 2022. In 2023, India's exports of these hydrocarbons to the EU increased to 200,000 barrels per day.
At the same time, Russian oil imports to India have been growing for seven months in a row.
Besides, the European Union's restrictions on imports of petroleum products from Russia contributed to an increase in purchases of diesel fuel from India. As a consequence, the countries of the bloc started focusing on other suppliers. As a result, the volume of Indian diesel imports by EU countries rose by 12-16% in the last fiscal year.
An increase in exports of diesel and jet fuels from India to Europe could lead to an increase in supply on the oil market. This could lead to a decrease in the price of Brent Crude Oil, if demand for it does not increase respectively.
The price of Brent Crude Oil did not reach 73 points to its main target of 86.75 and is not yet giving additional signals for the full realization of the previous forecast. The sharp jump in oil prices occurred amid an agreement by OPEC+ countries to reduce oil production by 1.66 million barrels per day. This news created a price gap of 512 points. In most cases, the gap is overlapped by 80%, so a corrective downward movement can be expected in the near future.
Signal:
The short-term prospects for Brent are to sell.
The target is at the level of 79.70.
Part of the profit should be fixed near the level of 82.30.
The stop-loss is at the level of 87.15.
"Bearish" trend has a short-term character, so the volume of trade should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
