The prices of oil dropped for almost $1 on Monday. That happened when the coronavirus cases in India are increasing. That condition can reduce the global demand of fuels, and so on. 

Meanwhile, the increasing stock which is hoped from the OPEC+ also adds the pressure. Based on the data, the BRENT crude oil is now 89 cent or 1.4 percent lower. That commodity is sold $65.22 per barrel. 

Furthermore, the West Texas Intermediate crude oil of the United States also declined. It declined by 87 cent or 1.4 percent. The price is now $61.27 per barrel. What is the relationship with India? 

Japan and India Are The Two Largest Importers

For your information, India and Japan are two largest crude oil importers in the world. India is in the third position. Meanwhile, Japan is in the fourth position. The coronavirus infection in India is so severe. 

The new virus infection cases there reach the peak record for the fifth day. That happened on Monday when some countries such as England, Germany, and America promise to send the medical help. 

The fuel demand in India slipped for about 100,000 barrel per day in April and declined by more than 170,000 BPD in May. The total sales of Indian gasoline is almost 747,000 barrel per day in March. 

Aside from that, Japan is also facing the increasing positive infection of the coronavirus. However, the condition is not as severe as in India. However, the government starts to take some actions. 

The Third Emergency Situation in Tokyo

In Japan, the third emergency situation is declared in Tokyo, Osaka, and other two areas. That is started from Sunday. This decision has an impact on almost a quarter of the population.

The situation happened when Japan is still fighting the virus. The OPEC+ which is led by Russia will discuss any production policies in a meeting that is held this week. Several analyst then give their predictions.

They are sure that OPEC+ will continue their decision to loose the limitation of production started in May. The prices of crude oil have been moving lower in several days. Before, it has been increasing. 

Before, that price increased by $60 per barrel or above the psychological level. The long-term technical prospect shows the further increase. However, the prices can be consolidating in a tight level.

The Long-Term Technical Prospect

The long-term technical prospect for the crude oil is still in an upward bias. It is because that price is positioned constructively above six MA and the decline trend is wider. It is higher than in 2008.

However, with the bearish cross happened on the MACD indicator, and RSI tests its increase trend which is longer than the March point, the longer consolidation period is maybe closer right now.

If the support above 58.90 continues to appear, the re-test from the yearly highest point (67 94) maybe will be continued in several weeks in the future. The crude oil prices move lower In some days. 

The Asia Pacific Market is Neutral

Elsewhere, the Asia – Pacific can open this week in a neutral note because the sellers are facing the conflicting fundamental support. The increasing case of coronavirus is one of the obstacles. 

Another knew is the tax increse plan, especially for the capital gain in the United States. Vice versa, the salary in America and other places are quite positive. It helps the sentiment to reach certain levels. 

It is known that India is facing the second wave of COVID-19 and it is very huge. The case weight in that country is almost reaching the half of the whole new daily cases. The death rates are 200000.