Crude oil prices plunged to their lowest level in almost two decades amid the weak of United States (US) demand and rising domestic supply - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! Crude oil prices plunged to their lowest level in almost two decades amid the weak of United States (US) demand and rising domestic supply. Yesterday, the price of West Texas Intermediate oil futures for May contract fell 24 cents to US$19.87 a barrel and Brent crude for June contract dropped $1.91 to $27.69 per barrel.

According to the Energy Information Administration (EIA), this year US’ oil demand will drop by more than 9 million barrels per day while the crude oil supply by 19.2 million barrels. And, the consumption in April is expected to fall by almost a third to the lowest level since 1995, making this the worst year in the history of the oil market.

In Indonesia, President Joko Widodo will lead a limited meeting with topic mitigating the impact of COVID-19 on the tourism sector and the creative economy. While, Bank Indonesia had agenda to release Quarterly Banking Survey Report in the first quarter of 2020.

In US, President Donald Trump said he would announce “new guidelines” for reopening the economy today. On Wednesday, the country’ coronavirus death toll – the highest in the world – surged past 30,000 after doubling in a week. The pandemic has hammered the US economy, overshadowing his efforts to win re-election in November.

During the lockdown, millions of Americans have lost their jobs and thousands of businesses have been forced to close their doors. Trump claimed on Monday had the authority to overrule state governors and order businesses across the country to reopen.

The analysts rated various data to watch for today are the US stock market had fallen, while treasury surged as retail, manufacturing and housing rebuilding data were bleak from the world’ biggest economy. This has added to fears of a severe global recession.

The S&P 500 index dropped from a one-month high, with all major groups down. Financial stocks plummeted when Goldman Sachs Group Inc.’ investment portfolio hit by the pandemic.

While Bank of America Corp and Citigroup Inc. following his rivals in setting aside billions for loan losses. In addition, US retail sales and factory output recorded a historic decline in March, and the April survey looked worse. Manufacturing in the state of New York and sentiment among American home builders plummeted by numbers that were previously unthinkable.

Yesterday, Indonesian Rupiah closed up 0.45 percent to 15,575 a US dollar but the Jakarta Composite Index corrected by 1.7 percent to 4,625. Today it is estimated that the local currency will move in the range 15,500 to 15,600 against the Greenback and the stock index between 4,750 – 5,000.

Shares that can be considered today are PT Mitra Adi Perkasa Tbk (IDX: MAPI), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Barito Pacific Timber Tbk (IDX: BRPT), PT Adaro Indonesia Tbk (IDX: ADRO), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Negara Indonesia Tbk (IDX : BBNI), PT Kalbe Farma Tbk (IDX: KLBF), PT Indofood Sukses Makmur Tbk (IDX: INDF), and PT Bank Mandiri Tbk (IDX: BMRI).

May you have a profitable day!

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