Jakarta, GIC Trade – Oil prices rose in early Asian trade on Thursday, January 26, 2023 as reports showed United States (US) crude oil inventories rose less than expected. Meanwhile, a weaker U.S. dollar makes oil prices cheaper for buyers using other currencies.
 
Where according to a data report from the Energy Information Administration (EIA) on Wednesday night, it shows that crude oil inventories increased by 533,000 barrels to 448.5 million barrels for the week ended January 20, 2023. This figure is far from the estimate for an increase of 1 million barrels.
 
Although crude oil production was smaller than expected, crude oil inventories have reached their highest level since June 2021, the EIA said.
 
Meanwhile, the factor that makes the restriction on the rise in crude oil prices is concerns about a global economic slowdown that could hamper demand for fuel.
 
Global economic growth is expected to be barely flat or stagnant above 2% this year, according to a Reuters poll of economists.
 
On the other hand, the declining scale of economic activity indicates the consequences of interest rate hikes by the Federal Reserve (Fed). The contraction in economic activity explains that oil demand is facing pressure, which could hurt oil prices going forward.
 
Technical Analysis



Oil prices have the opportunity to rise, with the 1-hour RSI indicator which is already in the oversold arera. Further increase in the price of black gold, it is necessary to pass the resistance level at 81.20 to reach the resistance of 82.13.
 
However, if the support breaks 79.45, then the crude oil price will correct further and change the bias to bearish until the next support in the 78.57 area.
 
This analysis is a fundamental and technical view used by the author, not a suggestion or invitation. To get more information click on the image below.