Oil Daily Analysis : 06 January 2021

The daily oil analysis on January 6, 2021 will discuss oil prices that move to continue their increase in trading on Wednesday 06 January 2021 Asian session, this price increase is due to a statement from the Minister of Energy of Saudi Arabia who is willing to cut oil production by 1 million barrels per day from February 2021 to March 2021. Previously, oil prices declined due to concerns from OPEC and non-OPEC members about the prospect of weakening demand for oil in the market. On the other hand, the OPEC meeting for the past 2 days was constrained by Russia's desire to increase its production by 500 thousand bpd. Although in reality, the current global demand is still below the expected level of the effects of the Covid-19 pandemic. "World oil demand is still around 78 million barrels per day, or about 20% lower than the standard level. The US Dollar currency moved steadily in the Asian session today, as market participants are still digesting the results of the Senate election in Georgia which will have an impact on market movements. Regarding the results of the second round of voting in the election of 2 senators in Georgia, it has an impact on the control lever of the Senate in the United States. If the Democrats win the Senate election, the Democrats will take control of the Senate and will be able to smooth out their legislative agenda, including higher taxes and more stimulus. Adam Cole, currency strategist at RBC Capital Markets, said that "if Democrats manage to take two Senate seats, the assumption is that (President-elect Joe) Biden will have more freedom to set policy and that will likely lead to more fiscal easing," the effect would lift risk sentiment and weaken the U.S. dollar.

Oil Daily Analysis Predictions

Today's prediction in OIL is expected to continue its gains, and the recommended OP (Open Position) is BUY at the level of 50.20. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points. This the daily analysis of oil on January 6, 2021. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.