The prices of oil weaken amidst the increasing case of coronavirus. That situation is threatening the demand outlook. When this news was written, BRENT price is known around the $66.24 per barrel. 

Meanwhile, the WTI is sold around $62.09 per barrel. In a previous sale session, the price of those both commodities declined for more than a percent. What is the cause of that condition so far? 

In fact, the increasing cases of COVID-19 in India and Japan since last month becomes a negative catalyst which burdening the oil movement. The new infection cases in India are more than 250000 in a day. 

Meanwhile, Japan also faces the increasing cases that are also worrying. Facing this situation, the Japanese government has a plan to tightening the coronavirus test check in some gates such as airports and harbors. 

India and Japan Have The Important Position

India and Japan has a high position as an oil consumer country. The increasing covid-19 cases there is for sure making the global demand is declining. So many negative things happened because of that. 

One of them is the sell-off action done by the market participants. However, there is one more thing to know. The investors are also paying attention to ghetto Oil Producing and Exporting Cartels plan. 

That is also known as NOPEC. Now, the USA house of representative is still considering it. If that law is agreed, there is a possibility for the Department of Justice to file the anti-trust lawsuit. 

It is especially to the OPEC country members. That thing has a potential to increase the oil price volatility and push the profit taking action. It may make the price is weakening in the future. 

NOPEC Has Been Forwarded Before

The history noted that the similar law has been forwarded before. It is especially for the last 20 years. That was done to push OPEC. However, it always fails and never pass the agreement from congress. 

Back to the topic, then demand outlook of oil is worse because of the pandemic. India as the second-largest population in the world is one of the main customers after China. Lately, that country reported a thing. 

They have for about 261500 new COVID-19 cases in a day. That condition makes India is in the second position as a country with the highest infected case. The number one is still held by the United States 

The second wave there is caused by the religious festival of Kumbh Mela done in the north Haridwar city. That event made a million of people gathered along the Gange River. It then has a further impact. 

The Lockdown Will Apply Again

The condition in India will make the government there to do a new limitation or lockdown. The bullish ambition of the market participants will be hampered. That makes the investors do a new action. 

They may do the long profit taking position. Besides India, Japan also becomes a country which faces the same trend. The daily infected cases there are increasing significantly, but it is not that severe. 

So far, Japan has the lesser coronavirus cases than the other countries in the world. However, in the recent condition there is a worry that the new wave maybe come there. It needs the preventive strategy. 

The Data From a New Survey

In the newest survey, the Japanese corporations believe that the fourth wave of COVID-19 case will come to that country. That will become a thing which is frightened by so many parties there. 

If that was happened, the business and consumption sector in Japan will be down again. It is not good for the development. That can trigger the negative catalyst for the movement of the global crude oil prices.