The price of oil declined on Friday morning in Asia. That happened because the investors wait for a meeting of OPEC + organization. Based on the schedule, the meeting will be held next week. So far, there are several movements due to the prices.
The Brent crude oil fallen down by 0.30% became $ 65.92. Elsewhere, the WTI commodity was also fallen by 0.41% and reached $ 63.27. The OPEC+ will be monitored tightly especially for any changes made by the cartel to the pro level so far.
Why? It is because the price is continued to recover. Saudi Arabia promised to reduce the added production at the beginning of the year. That could help to reduce the stock and prevent concerns about oversupply. That is a good idea.
The Dissent May Occurs
Saudi Arabia may say that statement, but it doesn’t guarantee that other members will agree. There is an indication that some other members will propose to keep supply stable. Meanwhile, Russia can be a country that supports the increase in production.
The market knowledge continues after the cold-weather happened last week in Texas and its surrounded areas. The Goldman Sachs Group Inc predicted that the Brent contract will rise up and reach $ 70 for two next quarters in line with several conditions.
Furthermore, some investors even predict an increase until $ 100 for a long-term period. How about the fuel demand side? From that side, it is known that the signs of economic recovery look slow. However, it quite stable from the increasing risks sentiment.
The vaccine launches are also continued globally. That adds optimism to have a quick global economic recovery. The different trend happened on Dollar where this main currency is up on Friday sales period. It has a sharp increase due to the US treasury yields.
The Data of Dollar
The index of USD which tracks for Greenbacks and other 6 currencies increased by 0.4% in 90.468. That was also higher for this week and only 0.2% lower for the current month. The EUR/USD was fallen down to 0.3% and reached the 1.2317 level.
That happened after touched the highest level for seven weeks on Thursday. The GBP/USD also decreased by 0.6%. That became 1.3933. Besides that, the USD/JPY decreased by 0.1% in 106.07. Before, it reached 106.43 for the first time since September.
The AUD/USD pair which is sensitive to any risks declined by 0.6% became 0.7823. The NZD/USD was also fallen down for 0.5% and reached 0.7338. Before, it was in 0.7463 on Thursday. Meanwhile, USD/CAD was up by 0.3% until 1.2632.
US Yield Treasure Becomes the Focus Point
The government obligation and especially the US treasury has been becoming the focal point of the global market. It is because sellers are nowadays predicting that inflation will rise up aggressively. It is because the economic recovery is supported by extreme fiscal stimulus.
Meanwhile, the monetary policy is really loose. That is why; the result of US benchmark treasure in ten years is shortly passing the level of 1.6% to be sold at the highest level for more than a year. The Central Bank is still so dovish for a while.
It is especially about this week's statement from the head of the Federal Reserve, Jerome Powell. The increase of bond yield result has been shown a developed sure that the monetary policy must be tightened faster. Risk is directed to a quicker result increase as well.
Based on a statement from an analyst, for a while, Powell promised that the huge obligation purchase will be continued. That is surely a fact. The time to change communication is maybe not too far from the future.
