The price of oil was weakened for the second day.  That happened on Friday in the market. That situation means that the commodity extends losses after OPEC cut the estimated demands. There is a reason behind the action.

One of the most possible things is that the International Energy Institution statement. They stated that the market is now still in an oversupply condition. The global market is showing several movements for some commodities. One of them is oil.

The Brent crude oil falls by 34 cents or 0.6%. It becomes $ 60.80 per barrel. Before, it was fallen by a half percent. In the other places, the United States oil commodity is also weakened by 36 cents or 0.6%. It became % 57.88 per barrel.

The Prices Were Up Lately

It cannot be denied that the prices of oils have been increasing for several weeks. That happened because OPEC and other producers which are known as the OPEC+ decided to cut the production. The decision was made based on several considerations.

Meanwhile, Saudi Arabia also promises to do a further decline for the unilateral production which is started this month. There are some signs that the market is ready to step back. That was stated by an energy director of a popular company.

The United States' raw oil and its relative power index are in the most overbought level. That was started in the second war of Iraq. The demand for oil in the world this year can be recovered. However, it is maybe in a slower period.

That statement was made by OPEC as the world's largest association for oil exporters. Before, the International Energy Association or IEA said that the stock of that commodity is still overpowering the global demands. That’s not a good thing for sure. 

A Hope from COVID-19 Vaccination

It cannot be denied that the COVID – 19 vaccinations bring huge hope all over the world. It is especially to recover the stock. For your information, the inventory of the United States raw oil fallen unexpectedly last week. 

It falls for more than six million barrels. It is because the makers increased their production to a level before the pandemic. That was said by the administration of Energy Information. The analysts in a Reuter's vote predicted for almost one million barrels. 

However, the market participants know that the stock of fuel increases for more than they hope. It is for about 4.3 million barrels last week. That was too much because people thought that increase was just around 1.8 million. 

It means that the related organizations or parties must do something. Based on the data, the demand for fuel for the last four weeks is only 10%. That was under the level of the same time last year. It must be fixed as soon as possible to maintain the price. 

Meanwhile, is USD Ready to Fall?

The American Dollar is on its way to experience the first week's decline. That happened for the first time in three weeks. It is because of the new weak signs from the USA employment market. That breaks the investor expectations about the recovery. 

That main currency is still weakening on Friday. It was pinned near the lowest level of two weeks after the claim of jobless data in America. The numbers are weaker than the expectation a day before it. What has happened in the market?

That adds the worry about the dollar rally. Before, it showed the too fast rebound track for the USA economy. The index of USD changed slightly in 90.423 in thinner sales because of the Chinese New Year moment this year.