Oil prices moved horizontally in the last three trading sessions. Euphoria about the US economic stimulus was offset by falling demand. World crude oil prices moved flat in trading on Thursday (26 / March), amidst the still thick nuances of the oil price war in Saudi Arabia and Russia. Oil prices are currently supported by market optimism after the US government officially poured stimulus to reduce the economic slowdown due to Covid-19.

At the time of writing, the price of Brent oil was at $ 27.14 a barrel, down 0.44 percent from the daily Open price. Similar conditions are also seen in the movement of WTI (West Texas Intermediate) oil prices which are now trading at around $ 23.96 per barrel, moving very close to today's opening level. Broadly speaking, both Brent Oil and WTI are both in a consolidation phase that has taken place since the beginning of the week.

The price of black gold moves in a narrow range because of the wait and see attitude of market participants in addressing various sentiments. One of them is that oil prices are still overshadowed by the prospect of falling demand as more and more countries take lockdowns to prevent the spread of Covid-19.

The Rate of Decline in Oil is Muted by Positive Sentiments of Market Participants

Latest, India which is one of the main consumers of oil with a population of 1.3 billion has decided to lockdown for the next 21 days. That means, demand for crude oil will decrease and this is the main catalyst that can reduce oil prices.

"With lockdowns in various countries, we predict that global crude oil demand will contract by more than 10 million barrels per day (BPD). This slump in demand will potentially lead to a flood of (oil) supply on the market," said an energy analyst from Australia and New Zealand Banking Group.

On the other hand, the rate of decline in oil prices was tempered by positive market sentiment, after the US government formally approved a $ 2 trillion stimulus package to help the economy hit by the Corona pandemic.

The stimulus package disbursed will be used to help companies withstand the adverse effects of Covid-19. Thus, it is hoped that the stimulus can stimulate the stretching of the US economy. This condition will undoubtedly foster investor expectations of the prospect of a future increase in demand for oil.

World oil prices edged higher on Tuesday trading (24 / March), trying to continue the limited increase that had occurred since Monday. Meanwhile, the WTI (West Texas Intermediate) oil moved at $ 24.25, up 2.88 percent from the daily opening price.

Detained, Increase in World Oil Prices Due to Sharp Slumps

Unfortunately, the increase in world oil prices is still stuck in the lowest range since 2008. WTI oil had fallen to a psychological level of $ 20 per barrel in the middle of last week, before finally recovering slightly to this morning's level.

The sharp decline in crude oil prices in the last few weeks has certainly had an impact on the price adjustments made by oil producers in selling prices to consumers. A recent report from Reuters said that gasoline prices in the US had dropped by 30 percent to a record multi-year low.

The fall in prices was confirmed by the slump in the RBc1 Index, which fell 32 percent. The sharp decline in fuel consumption in the US is the impact of the increasing number of residents who limit activities outside the home for fear of contracting the Coronavirus (Covid-19).

Keep in mind, US gasoline consumption reaches 9 million barrels every day or almost half of the country's total oil consumption. So, do not be surprised if the decline in gasoline prices into the spotlight from various parties.