The price of world oil is strengthening significantly. That was happened after the meeting of the OPEC+ organization which was done for two days. The BRENT price closed the sales in a day before in around $64 57 per barrel or 2.27 percent stronger daily.
Meanwhile, the wti was sold around $ 61.22 per barrel or 2.95 stronger. Yesterday, the raw oil spot and the equity market was closed due to the Easter day. The demand prospect is still questioned right now. However, OPEC is still on their decision to increase the production.
In their new meeting OPEC+ concluded to increase the oil production and it will be started on May this year. In a meeting held virtually and attended by 23 country members, it is decided that the oil production will be increased by 350,000 barrels per day.
The Gradually Increase will be Taken
The 350,000 BPD increase will be started on May and June. After that, the number will be changed become 400,000 bpd in July. This step was taken by considering the economic recovery prospect which continues to increase in several months ahead.
OPEC+ thought that they need to do an adjustment to that outlook by pushing the daily oil production. If the global economy rebound in the future or in line with the scenario as what OPEC was expected, the price of that commodity may be stronger again.
An analyst predicted that BRENT will reach $80 per barrel in the third quarter. However, he said that the high price projection like that is mostly done the crash situation. Meanwhile, some people are still skeptical because the oils demand outlook condition.
It is shadowed by the third wave pandemic in the Europe area. Mostly, the prospect of oil movement in the future depends on the vaccination process which is done globally in various countries. The massive vaccination is done for at least to create the group immune.
The US Dollar Declined
The US dollar step back around 92.85 in the early European session yesterday. That was happened ahead the US employment data release tonight. The market is not too busy because of the easter holiday in all over the world. It reduces the pressure experienced by the USD rivals.
When this news written, the EUR / USD was stable around 11780. Meanwhile, the USD / JPY was flattening around 0.15% to the level of 110.40. The last night US economy data release showed the different performances. The survey result by PMI is so impressive.
However, the jobless claim increased sharply than the consensus estimation. USD is now consolidating to it’s high level which has been placed since the beginning of the week. The US dollar positive sentiment is still quite much. It is especially the vaccination progress.
The new stimulus plan of 2 trillion dollar which is still discussed by the Biden government also has an impact. Many speculators is now betting on dollar. The investment managers also cut their short position on the other currencies to open the door for dollar increase.
The 10Y US Treasury Obligation Yield
The 10Y US treasury obligation yield nowadays is in the 1.677% level. That experienced a small declined than the highest record of 1.746 percent which was reached at the end of March. Market is now maybe waiting for the next catalyst to push that yield.
The United States non-farming payroll is predicted to have a significant increase by 379k and becomes 647k. Meanwhile, the us jobless level is hoped to decrease. It is from 6.2% up to 6.0%. The situation above may have the potential for bullish.
It is especially for the USD and vice versa. However, the instant effect from the NFP release this time maybe is more quiet than before. It is because not many traders have been closing their book earlier due to the Easter celebration.
