On Tuesday morning, oil reportedly fell in Asia. The increasing number of coronavirus cases worldwide is the cause. More people are infected nowadays. The increase also has led to growing concerns about fuel demand. The numbers are feared to be plummeting.
However, expectations about a withdrawal of U.S. crude inventories is hoped to decrease and limit losses in the future. According to market data, a downward trend is indeed occurring. The commodity of Brent Crude fell 0.13% to $55.59. That may changes again in the future.
Elsewhere, WTI crude futures also reportedly fell as little as 0.06% to $52.22. Despite showing no gains, these two futures remain above the $50 figure. So it just decreases a little so it doesn't have to worry too much. The price is still volatile too.
The COVID-19 Cases in The World
Thousands of people are infected by coronavirus every day. To date, there are reportedly 90.87 million who have been infected by the virus. It was counted until January 12, 2021. That information is based on Johns Hopkins University data that is always updated daily.
The struggle of many countries around the world to obtain and launch the coronavirus vaccine continues. Until now, some countries are extending or re-implementing strict lockdown measures to control the spread of the virus. Furthermore, a new, more rapidly contagious variant is now emerging.
Stephen Innes thinks that the market will quickly conclude that a simple setback will only happen briefly. This is as long as the spread of the virus in China remains under control. Stephen is a strategist of a well-known institution. He talked about the prospect of US stimulus.
From America, President-elect Joe Biden and his government will be inaugurated soon. It is especially in on January 20. They have promised the public and many business owners to provide "trillions" of economic fun as the stimulus.
U.S. Crude Oil Supply Data
Meanwhile, the supply data from American Petroleum Institute (API) is expected to show a draw for the fifth week in a row. For your information, from the data informed several weeks ago showed a withdrawal of 1.663 million barrels. People are now waiting for one of the other important information.
The information is API data. Reportedly, the information will be released at a later date once it is ready. However, Goldman Sachs predicts that the price of Brent oil futures may increase to $65 per barrel by the summer of 2021. Actually, these predictions are arguably still very rational.
Before, they thought that the everything could be gotten at the end of the year. The investment bank stated that it is triggered by the cut done by Saudi Arabia. It is especially for the production sector. The Democrat domination and White House transition are also influential.
USD Was Slipped Down Too
The American dollar moved lower on Tuesday. The currency consolidated after recent gains as safe havens recovered from lows on the back of rising Treasury yields. The USD was reported to be down 0.1% at 90,403. Earlier, the dollar rebounded for the last three sessions from nearly three-year lows.
This was evident during the previous week. Despite today's losses, expectations around the greenback have changed over the past few days. This is due to the prospect of fiscal stimulus and hints that the Federal Reserve may start reducing bond purchases by the end of the year.
Market participants will be keeping an eye on the release of JOLT jobs data for November to be released today. The data will give you a glimpse of what's happening in the labor market. That is especially related to hiring, especially after previous disappointing payroll releases.
