Jakarta, CNBC Indonesia – World oil prices moved down throughout this week. Understandably, investors are also humans who want to find a bite of rice (and a handful of diamonds).
During this week, the price of Brent type oil was corrected 0.26% in a straightforward manner point-to-point. While the light sweet type decreased 0.82%.
This decline occurred after the price of black gold jumped more than 9% in the last month. Since the end of 2020 (year-to-date), oil prices have skyrocketed by no less than 30%.
Therefore, it is natural for investors to see opportunities cuan gede. Profits of more than 30% if you hold the oil contract since the beginning of the year is certainly an opportunity that should not be wasted. Investors are human too, have a family to support.
However, in the future, the opportunity for an increase in oil prices is still wide open. In its latest report, the Organization of the Petroleum Exporting Countries (OPEC) estimates that demand will accelerate as the world economy begins to recover from the corona virus pandemic (Coronavirus Disease-2019/Covid-19).
OPEC estimates that world oil demand this year will increase by 5.89 bare / day. 6.5% higher than the forecast made last month.
“Total oil demand is estimated at 96.3 million barrels / day. However, the increase in demand seems to have only occurred in the second half,” said the OPEC report.
However, demand for oil has not returned to what it was before the pandemic. Because after all the activities and mobility of the community are still relatively limited.
“Energy-intensive sectors, particularly travel and transportation, will still feel the impact of the pandemic. This sector will not contribute much to the increase in demand,” the OPEC report continued.
Apart from increasing demand, the increase in oil prices was also driven by the commitment of OPEC countries to reduce production. In February 2021, OPEC countries’ oil production was reduced by 650,000 barrels / day to 24.85 million barrels / day. The largest reduction in production occurred in Saudi Arabia, which was minus 956,000 barrels / day to 8.15 million barrels / day.
CNBC INDONESIA RESEARCH TEAM
(aji / aji)
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