WTI oil breaks below $80.00 despite USD’s weakness

Western Texas Intermediate crude oil benchmark hardly progresses by 0.05%, it is trading at $79.94 during the New York session.

The market sentiment improved through the U.S. session, as depicted by U. S. equity indexes rising between 0.01% and 0.65%. The U.S. dollar Index, which influences the price of crude oil, is declining 0.51%, clinging to 94.00

Oil’s move on Wednesday lies on the back of the OPEC+, which revised lower its estimate for 2021 global oil consumption in the organization’s monthly report.

OPEC+ added that the spike in natural gas prices could boost crude oil use like power generation, but it could curb the demand in other areas such as refining.

Oil has surged due to the rebound in activity from the pandemic, which has increased consumption, depleting inventories. Shortages in natural gas and coal have also driven demand on oil.