Global oil price tumbled by 7 percent amid a surge in new COVID-19 cases in Europe and the block' continued challenge with vaccinations - Photo by Pertamina

JAKARTA (TheInsiderStories) – Good Morning! Global oil price tumbled by 7 percent amid a surge in new COVID-19 cases in Europe and the block’ continued challenge with vaccinations. The news combined with other global issues sending the West Texas Index crude price below US$60 a barrel and Brent crude price at $63.28 per barrel on Thursday.

Sentiment was also hurt after a decision by India, the third biggest oil importer after China and the United States (US), that announced to cut its purchases from Saudi Arabia by about a quarter starting May after Riyadh refused to let the OPEC+ to raise the output. The other gulf country, Iran, could also strike a deal with India as well.

In Europe, The number of positive cases in Germany jumped by over 17,000, the biggest daily rise since Jan. 22. While, large parts of Italy were back in lockdown. In Asia, the investors braced for the outcome of a Bank of Japan  meeting.

In US, yields of 10-year treasury notes spiked to the highest level since early 2020 at 1.754 percent and provided some support to the Greenback. If sustained, this would be the seventh straight week of increases and provided some support to the Greenback.

Yesterday, Indonesian Rupiah fell 0.12 percent to 14,410 per US dollar and the Jakarta Composite Index (JCI). Analysts think that the Federal Reserve’s emphasis on tapering off will still make market participants more calm.

However, the potential for external pressure will still exist because the need for US bond issuance is still large while the central bank has no indication for operational intervention. Nevertheless, the high foreign exchange reserves and the trade balance surplus in Indonesia are considered to be able to support the pressures.

With this information, the Rupiah is expected to move in the range 13,950 – 14,450 against the US Dollar and the JCI between 6,250 – 6,350. Stocks that can be watched today are PT Bank Central Asia Tbk (IDX: BBCA), PT Unilever Indonesia Tbk (IDX: UNVR), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Astra International Tbk (IDX: ASII), PT Indocement Tungga Perkasa Tbk (IDX: INTP), and PT Semen Indonesia Tbk (IDX: SMGR).

May you have a profitable Day!

Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia