Jakarta, CNBC Indonesia – Crude oil prices for actively traded contracts rose today Tuesday (11/7/2020) in line with the emergence of hopes for further stimulus in the US and improving demand in the Asian region.
Hthe price of Brent oil futures rose 0,53% ke US $ 45,23/barrel. At the same time, Uncle Sam’s benchmark oil futures, West Texas Intermediate (WTI) rose higher with an appreciation of 0.79% ke US $ 42,27/barrel.
The increase in oil prices caused the share price of oil and gas producers to increase. The share price of PT Medco Energi Internasional Tbk (MEDC) managed to jump 9.76% to the price level of IDR 540 / unit until the close of session I.
Then the shares of Pertamina’s subsidiary, PT Elnusa Tbk (ELSA), which today managed to fly by 2.46% to the price level of IDR 250 / unit. For the Red Plate company engaged in the gas distribution sector, PT Perusahaan Gas Negara Tbk (PGAS) managed to slightly increase 0.41% to a price level of Rp 1,215 / unit.
The price of black gold was raised after US President Donald Trump said that the Democratic Party congress wanted to meet with him to discuss economic assistance related to the corona virus, through his Twitter account,
As is well known, talks between the Democratic Congress and the Trump administration broke down last week.
Adding to the positive sentiment, Saudi Arabia Aramco CEO Amin Nasser said he sees oil demand starting to rebound in Asia due to the gradual opening of the economy.
China’s factory deflation eased in July. This was driven by the increase in global oil prices and industrial activity back to pre-coronavirus levels. Clearly this is an indicator adding to signs of recovery in the world’s second largest economy.
Citing the US Department of Energy website, energy companies have begun to reclaim millions of barrels of oil from the US government’s emergency reserves after leasing storage at the facility to help manage excess crude this spring.
Then from the supply side, there is also good news which ultimately makes crude oil prices increase too. Iraq on Friday said it would cut its oil production by 400,000 barrels per day in August and September to compensate for excess production in the past three months.
The move will see Iraq meet production-cutting quotas set by the organization of oil-exporting countries and its allies known as OPEC +.
These two positive sentiments on the demand and supply sides ultimately enabled oil prices to strengthen in trade today, even since last Saturday Price Brent oil futures up 0.38% and West Texas Intermediate (WTI) edged higher with an appreciation of 0.57%.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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