Oil declined on Friday morning in Asia. That black liquid released some profits from its latest session. It was even when the investors welcomed the last step from the US stimulus package which pushes the hope of fuel demand recovery to increase.
The Brent crude oil slightly declined by 0.07 percent and became $69.47. Meanwhile, the WTI contract slipped for 0.32% and reached $ 65.81. The new American President, Joe Biden signed the $1.9 trillion package to become a law on Thursday.
That was exactly one day after the House of Representatives gave the agreement for that plan. The investors also still optimism because the spring is coming. More cars are more seen in the road. The distance that they have is increasing than before.
The Note from OPEC
So far, the numbers of vehicles or cars in the road increases by 10%. It was happened from the last one week. Meanwhile, the use of road in England also increases. OPEC created a note. It is about the demand on Thursday.
They made it really carefully because they decline the prediction for the crude oil that needs to be pumped. It will be used for the next 2 quarters. That decision is done to continue the decline of production. The market is now tightened.
That decision pushes the optimism of the recovery, especially for the fuel demand. If the program of vaccination is smoothly done, the analyst predicted that the fuel demand will be released in the dry season. That is the time when people are usually driving.
Oil closes the week with the increasing price to its highest level since the October 2016. That situation happened on Monday. It was especially after an attack to the Saudi Arabia facilities. The price declined as time goes by and ready to note its weekly lost which is moderate.
The US Dollar Increases
Meanwhile, the US Dollar increased from its lowest level in a week. That was happened on Friday because the obligation is higher. However, it seems that the thing will decline in the first week to its main currencies in the market.
The index of dollar so far increased by 0.2 percent became 91.58 after reaching 91.364 last night for the first time since March of 4. The index has been decreased by 0.6% this week. That moves back from its highest point.
That highest level is happened for more than 3 months which was reached on Tuesday. Euro was sold at around $ 1.1965. It was after the European Central Bank speeds up the emergency obligation purchase along the next quarter. The index of dollar is stronger.
That currency was stronger above 1.6% this year because following the benchmark of the treasury result from under 1% up to 1.625% . On Friday, the treasury yield was at around 1.55% level and it still become a dynamic situation.
The Fed Meeting will become a Highlight
The meetings made by the US Federal Reserve after Jerome Powell does not state his worry about the obligation result which is higher still the beginning of the month. It will become the focus of people. The USD story is still waiting for the Fed to play its card.
It is still not sure whether the Fed will still in its dovish talk or step back from that decision. Meanwhile, the Franc Swiss declined to 0.9267 to Dollar after coming back to its lowest level in seven month, That was still at the beginning of this week.
Meanwhile, Yen was decreasing by 0.2% and became 108.71. The Bank of Japan can change the three levels deposit system. It is done to free most of the stocks of the negative interest rate. The Australian Dollar and New Zealand still have a good future.
