United States (US) West Texas Index (WTI) crude prices slipped into negative territory for the first time ever over storage capacity constraints after COVID-19 hit the demand - Photo: Special

JAKARTA (TheInsiderStories) – Good morning! Yesterday, oil prices rising more than 1 percent after the Organization of Petroleum Exporting Countries (OPEC) agreed to extend restrictions on 1.2 million barrels of crude oil supply until March 2020. Today, OPEC is scheduled to meet with Russia and other countries that are members of OPEC+ to discuss supply cuts amid soaring United States (US) production.

This morning, the price of west texas intermediate oil for August 2019 shipments on the New York Mercantile Exchange was at the level of US$58.72 per barrel, down 0.62 percent from the previous day rose 1.1 percent at $59.09 a barrel. While, Brent crude closed up 0.5 percent at $65.07 a barrel.

Still from overseas, aircraft manufacturer Boeing Co., will announce plans to purchase KLX Inc., an aerospace component company in cash for $3.2 billion, to expanding its aircraft service business. This merger will provide services that will benefit the supply chain and customers and save annual costs of around $70 million by 2021.

From the country, the Government has announced a reduction in the price of airfare tickets for the Low Cost Carrier of 50 percent only valid every Tuesday, Thursday and Saturday, at 10.0-14.00 local time. The decline was carried out after periodically evaluating the reduction in the Limit Rates for the price of airplane tickets that have been regulated in the Minister of Transportation Regulation No. 106 of 2019 and effective from 18 May 2019.

Meanwhile, the World Bank projected Indonesia’ economic growth in 2019 to be 5.1 percent, lower than the previous prediction of 5.2 percent, mainly due to external sentiments such as the US-China trade war, global geopolitical conflict, and Brexit.

On the other side, internal sentiment also supports predictions of weakening Indonesian economic growth, for example, commodity exports are likely to decline this year. Because, in the price of Indonesia’ leading commodities such as crude palm oil and coal in a weakening trend.

One else, an important news came from PT Freeport Indonesia (PTFI) after divested by 51 percent. The president director Tony Wenas revealed the company’ planned to boost mine production. This year, PTFI has invested $8 billion in underground mining, and until 2041 Freeport will invest another $15 billion. By the end of this year, Freeport planned to operate 100 percent in underground mines.

After the winning of Joko Widodo – Ma’ruf Amin, the Demokrat Party announced that it will decide its future and position on July 10, said the secretary-general Hinca Panjaitan in Jakarta yesterday. The meeting between executive member and party chairman’ son Agus Harimurti Yudhoyono and President Widodo is widely considered to be a sign that the party is ready to jump ship to the pro-government coalition.

Furthermore, the performance of Indonesia’ financial market after passing the first six months, still provide positive returns, which is equal to 2.65 percent. However, when compared with the other Asian countries, the Jakarta Composite Index’ (JCI) performance almost became the worst. The JCI is only ahead of the KLCI (Malaysia) index which was corrected by 1.09 percent.

Finally, the Rupiah exchange rate at the close of Monday was still strong in spot market trading. But the strengthening of the Rupiah was thin 0.11 percent compared to the closing position of trading last weekend.

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia