WTI breaks below $ 80.00 despite broad US dollar weakness

• WTI is barely making progress as OPEC + lowered its estimates for the remainder of 2021.
• The US Dollar Index is down, approaching 94.00.
• As US stock indices rise, market sentiment is bullish towards the end of the New York session.

El Western Texas Intermediate (WTI), the US crude oil benchmark is just up 0.05%, trading at $ 79.94 during the US session at the time of writing. Market sentiment improved during the US session, as shown by US equity indices which rose between 0.01% and 0.65%. Meanwhile, the US dollar index, which influences the price of crude oil, is falling 0.51%, holding on to 94.00

WTI’s slow advance on Wednesday is due to OPEC +, which revised down its estimate for world oil consumption in 2021 in its monthly report. In addition, the group added that the rebound in natural gas prices could boost the use of crude oil as power generation, but could dampen demand in other areas such as refining.

Oil has skyrocketed due to the rebound in pandemic activity, which has increased consumption, depleting inventories. In addition, the shortage of natural gas and coal has driven demand for so-called black gold.

WTI Price Forecast: Technical Outlook
Daily chart

WTI is trading around the highs for the week, but fell back below $ 80.00, testing the close of Tuesday’s price action. Daily moving averages are below price, indicating that crude oil is trending up. Momentum indicators such as the Relative Strength Index (RSI) above 70, at oversold levels, means that WTI could head for a downward correction before resuming the bullish bias.

In the event of a downward correction of the WTI, the first demand zone would be the October 6 high at $ 79.53. With a break of the latter, WTI could fall towards the October 7 low at $ 76.60.

On the other hand, a daily close above $ 80.00 indicates that oil prices could head towards consolidation, waiting for the RSI to break out of oversold levels before resuming the uptrend.

ADDITIONAL LEVELS