BRICS Summit Calls for Maximum Restraint in Energy Crisis

The BRICS summit concluded with a call for maximum restraint in addressing the energy crisis. The group, which includes major emerging economies such as India, China, and Russia, aims to promote cooperation and resolution rather than escalation. This shift in approach comes as crude oil prices have pulled back after steep surges, with WTI breaking above 7-month declining resistance near $94.

The energy sector ETF, XLE, also broke above a major 2008-2026 resistance level, turning it into support. The rally was driven by rising inflationary risks and transportation disruptions contributing to food-price inflation, which has reached levels last seen in 2022. However, the BRICS summit's emphasis on diplomacy suggests that the pressure on global economic growth and oil exports may be reduced.

For WTI, key support levels align with the July 2026 high near $94 and the September 4 low near $88. A breakdown below these levels could confirm a broader de-escalation narrative, while a daily close above $103 would redirect WTI toward $108, which also represents the 78.6% Fibonacci retracement of the March-July downtrend.