Oil continued on Friday morning in Asia. The situation is at a time when there are still reports of stimulus regarding the U.S., among others in OPEC, and covid-19 numbers are increasing every day. It is especially in a large country like the United States.
Brent crude futures rose 0.23% to $44.30. In addition, WTI futures also rose as much as 0.10% to $41.94. However, from the data is that both Brent and WTI futures remain above the $40 figure. That condition is not too bad.
According to some parties, there are various factors affecting the price. The example is the coronavirus case that is still high, U.S. fiscal stimulus, and others. Our experts still struggling with the way the vaccine could exist where it may be up to more than 90%?
Pandemic Affects the Commodity
The ongoing positive case of COVID-19 around the world is the main energy price for oil. This is because the coronavirus pandemic is increasing and the economy is very western sprawling. As of November 20, there were more than 56 million cases globally and 1.36 million deaths.
One-fifth of both come from the US. The data was obtained from Johns Hopkins University. Very lack of demand for fixed prices is limited for some time. Another factor influencing the current value is the contradictory US signal over the COVID-19 stimulus package.
Elsewhere, the Organization of the Petroleum Exporting Countries (OPEC) is singing against each other. Several decisions seem difficult to be agreed. A thing like this will probably be at a market price. It is not only for the important stocks but also in various currencies.
Pros and Cons of Steven Mnuchin's Request
In the US, Treasury Secretary Steven Mnuchin asked $45 billion of the current stimulus package to go to the United States Treasury Department. The plan is that the funds will be loaned to local governments, businesses, and others. Not all parties are with this.
The loan program has played an important role in protecting the country from the economic risks of COVID-19 such as a bad recession. The potential disadvantages of this program are manly, especially the possibility of greater demand than the initial facto itself.
The U.S. Federal Reserve, which is responsible for overseeing the loan program, reacted. They prefer a complete range of facilities that are wrong at this time of the coronavirus pandemic. This is their important role as a sprinkling for an economy that is still tense and vulnerable.
At the same time, the US Senate Republican Majority Leader Mitch McConnell is arguing for a return to the negotiating table with Democrats. They will work together and complete a new COVID-19 assistance package. This could be the hope of continued demand, not diminishing.
The Faster the Better
Any stimulus fund that was before the holiday will help keep crude oil prices near the upper limit of the recent trading range. That was conveyed by Edward Moya, senior market analyst at OANDA told Reuters. Besides, there are a few other things to know.
News of the split within OPEC, the United Arab Emirates (UAE) took an unusually opposed stance against Saudi Arabia. UAE wondered, continued the current cuts may not be the best solution for this recent situation. Saudi Arabia, meanwhile, is very much on the contrary.
There have been strong reports, but it has not been confirmed yet. That report was about the UAE which is probably quit the OPEC. If true, this would be one of the crises in the history of the oil cartel.
Investors are now looking at the full ministers of OPEC+, which will be holding soon. Based on the schedule, that meeting will be held on the 30th of November and 1st of December this year. Further guides may be arranged.
