Oil prices are still moving at high prices to this day. Oil prices have jumped since last Friday due to tensions between the United States (US) and Iran.
Tuesday (7/1) at 9.26 WIB, the price of West Texas Intermediate (WTI) oil for February 2020 delivery on the New York Mercantile Exchange was at US $ 62.65 per barrel, down 0.98% compared to the closing price of yesterday’s trade at US $ 63.27 per barrel.
PT BNI Sekuritas Damhuri Nasution’s Head of Research Division sees that if tensions between the US and Iran continue, there could be an economic recession. This is because oil prices have the potential to surge by more than US $ 100 per barrel.
Just so you know, tensions between the United States and Iran escalated when Iranian General Qassem Soleimani was killed in a US drone attack during a convoy at Baghdad airport.
In fact, almost 30% of the world’s oil supply flows through the Strait of Hormuz. As a result of this attack, Iran could in the future close the Strait of Hormuz, the path to send oil out of the Persian Gulf. This is what allows oil prices to increase dramatically.
Damhuri further explained that the tensions would indeed raise some commodity prices such as oil, coal and CPO. However, according to him the increase was only temporary. “I don’t see any positive effects that are sustainable,” Damhuri said, Monday (1/6).
BNI Securities Head of Equity Research Kim Kwie Sjamsudin added, soaring oil prices would exacerbate Indonesia’s current account deficit (CAD) so that there is an opportunity to suppress the rupiah exchange rate.
