WTI Oil Price Broke Below Important Support



U.S. West Texas Intermediate and international-benchmark Brent crude oil futures continue falling from previous U.S. session trading, as India’s COVID-19 crisis escalated and a key U.S. fuel pipeline resumed operations, bringing an end to the rally that had driven crude to an eight-week high after forecasts for a rebound in global demand later in the year.

Prices also came under pressure as a broader surge in commodity prices, labor shortage and much stronger-than-expected consumer prices data this week have stoked inflation concerns that could force the U.S. Federal Reserve to raise interest rates.

In another bearish signal for oil demand, a variant of the coronavirus has swept through India, the world’s third-biggest importer of crude.

Colonial Pipeline Restored

On Wednesday, Colonial Pipeline said in an evening statement that it had restored its operations days after it was forced to shut down its entire system due to a cyberattack. The company described its decision to temporarily close pipeline service as a precautionary measure.

Technical analysis

Oil price broke below the daily 20-SMA line which also coincide with the lower up-channel trendline. Putting the nearest support the daily 50-SMA at $62.60 and important 100-SMA $58.88 in focus.