- WTI sellers are alive and well as inflationary fears churn the markets.
- US oil is pressured by news of the Colonial Pipeline restart and ignores EIA data.
- The 1 hour chart shows that a test of the key support near $ 64.00 seems inevitable.
WTI (NYMEX futures) prices are extending their correction from weekly highs of $ 66.62, shedding nearly 2.5% on the day, while the $ 64.00 level remains at risk.
At the time of writing, WTI is testing lows around $ 64.20, affected by news that the Colonial pipeline is likely to restart operations. Meanwhile, turmoil in global stock markets, courtesy of growing concerns about inflation, is putting additional pressure on higher-yielding oil.
Meanwhile, markets are ignoring a drop in weekly US crude stocks from the Energy Information Administration (EIA) and a sharp drop in exports.
From a short-term technical perspective, risks remain sloped to the downside after the price broke the 100 and 200 hourly simple moving average.
The decline intensified following a break below the aforementioned support levels, which coincide at $ 65.15, opening the doors for a test of static support at $ 63.90.
However, the bulls could manage to defend that support as the RSI has entered oversold territory.
Any pullback could test the resistance at $ 65.15, above which the 50 SMA at $ 65.42 could be tested.
Higher up, the bearishly sloping 21 SMA at $ 65.64 could threaten the recovery.
WTI 1 hour chart
WTI additional levels
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