Today, the oil price slips more than 1 percent ahead of key meeting between OPEC and allies and a record weekly jump in US weekly crude stocks - Photo by OPEC Secretariat Office

JAKARTA (TheInsiderStories) – Good Morning! Today, the oil price rises more than 1 percent ahead of key meeting between OPEC and allies and a record weekly jump in US weekly crude stocks. Yesterday, West Texas crude price settled up 2.6 percent, at US $ 61.28 per barrel and Brent oil price rose 2.2 percent to $ 64.07 a barrel.

While, stockpiles of US crude ballooned last week after a snowstorm shut down refineries in Texas. The Energy Information Agency said US crude inventories swelled by 21.56 million barrels for the week ended Feb. 26.

In United States (US), the economy has not recovered to pre-pandemic levels, but markets have continued to surge well above 2020 levels, leading to somewhat stretched valuations. In addition, a renewed climb in US interest rates even as data pointed to a wobble in the labor market.

Federal Reserve’ governor, Lael Brainard, noted she found it ‘eye-catching’ but repeated that it will be ‘some time’ before the policymakers changes its stance on bond purchases. From Europe, the central bank is reportedly having second thoughts about needing to react to the recent rise in bond yields after last week President Christine Lagarde had said that the European Central Bank would be closely monitoring nominal bond yields.

Central bank have shown varying degrees of concern about the sell-off in bonds last week. And, the Reserve Bank of Australia, has intervened heavily over the last week to stop both three-year and 10-year bond yields rising.

In Indonesia, health minister, Budi Gunadi Sadikin, clarified that the national target to give one million shots of the COVID-19 vaccine a day could only be realized in June 2021. The reasoned that the government is currently lacking the supply of vaccines.

The government targeted to vaccinate 70 percent of the population or 181.5 million people and it will require 426 million doses including the spare doses. According to him, Indonesia will receive a total of 90 million vaccines until June 2021, while the rest will land in July – December 2021.

Then, tourism and creative economy minister, Sandiaga Salahuddin Uno planned to reopen Bali, particularly Ubud and Nusa Dua, for international tourists under the travel bubble scheme. Both were classified as green zones that are at low risk of virus transmission, he adds.

Yesterday, Indonesian Rupiah closed up 0.56 percent to 14,245 versus the American Dollar and the Jakarta Composite Index (JCI) strengthened 0.28 percent to 6,376.76 from the previous day. The analysts rated, that both movements are influenced by the decline in US Treasury yields.

Moreover, the fiscal stimulus has fueled market expectations for a speedy recovery. Investors are also tracking the progress of the $1.9 trillion aid package. The bill was passed by the House the previous week and will be debated by the Senate in this week.

Domestically, the government believed that this year the Indonesian economy would recover or grow positively in the range of 4.5 – 5.3 percent. The prediction refers to the recovery rate from the COVID-19 case which increased to 85.88 percent and the trend of the death rate which continued to fall by 2.71 percent.

With these various indicators, Rupiah is estimating move in the raneg 14,210 – 4,270 per US Dollar and JCI between 6,288 – 6,432. Stocks that can be considered are PT Astra International Tbk (IDX: ASII), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Unilever Indonesia Tbk (IDX: UNVR), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT AKR Corporindo Tbk (IDX: AKRA), PT Medco Energy Internasional Tbk (IDX: MEDC), and PT Bank Negara Indonesia Tbk (IDX: BBNI).

May you have a profitable day!

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