Oil prices rose to $52 a barrel on Monday. The situation occurred because U.S. President Donald Trump finally signed a coronavirus aid package. In addition, the start of the European vaccination campaign is also one of the supporting factors so far.
Brent crude was reported to be up as much as 43 cents, or 0.84%. That means commodity prices are moving to $51.72 a barrel. This reverses the previous decline. U.S. West Texas Intermediate (WTI) crude also rose 45 cents or 0.93%. Now it costs $48.68.
The signing of the stimulus bill with the possibility of increasing the measure has had an impact. Those conditions will put prices below oil prices at a faster time. This was conveyed by Jeffrey Halley an analyst at brokerage OANDA. What are the details on the market?
Trump's Threats Are Not Proven
Donald Trump's presidency is due to end next month. He will be replaced by Joe Biden. Earlier, Trump made threats to block a $2.3 trillion aid and spending package. He asked for a larger amount for the stimulus which is quite difficult.
That commodity has recovered from the spring’s low reached . Such bad conditions occur because the emerging pandemic continues to suppress demand. However, as a sign of a further resurgence in the fight against COVID-19, Europe has launched a mass vaccination campaign on Sunday.
However, there is one more thing that is worrying about the emergence of new variants of coronavirus. The variant was first seen in the UK and is now detected in other countries. Lately, Singapore has confirmed the entry of the case in its country.
That situation will obviously hit short-term demand and weigh on prices. In addition, Brent is still below the $52.48 it acquired on December 18. This is one of its strongest levels since March. This means that the commodity still remains very range.
OPEC+ Meeting Will Always be Highlighted
What is still highlighted by market participants in the meeting on January 4? On that date, it is scheduled that the Organization of the Petroleum Exporting Countries and its allies, also known as OPEC+ will hold a meeting. OPEC+ may make a decision on a production cut.
This is considered important to be done to maintain the stability of oil prices. However, everything will be done slowly and gradually so that the market will not be surprised. OPEC+ is set to increase production by 500,000 barrels per day in January.
In addition to oil, other commodities such as gold also increased. One of the factors that caused the same was Trump's decision to sign a stimulus that had previously been adrift - for several months. The number of approvals is also quite fantastic.
Gold is Up For About 1%
The price of gold reportedly rose about 1% to a range of $1898 per troy ounce. The moment occurred at 09.04 WIB after President Donald Trump signed a Covid stimulus of 2.3 trillion USD. This decision restores unemployment benefits the U.S. citizens due to the prolonged pandemic.
In addition, Trump's decision could also avoid a partial shutdown of the federal government. This year it was reported that the price of gold has strengthened by more than 24%. The main cause is the attractiveness of gold as a safe haven.
This commodity is considered as anti-inflation in line with the decline in the value of the currency due to stimulus measures. As if to support the rising price of gold in the market, the USD actually weakened against some of the world's major currencies.
Silver prices, meanwhile, increased 3% to a range of $26.63 per troy ounce. Platinum also gained 1.7% to $1,040.37 a troy ounce. Elsewhere palladium rose as much as 0.5% to a range of $2,360.79. The prices are still moving in the market.
