Jakarta, GIC Trade – Crude oil prices in Monday's trading on February 13, 2023 fell about 1% after experiencing gains in the previous session, as investors focused on short-term demand concerns stemming from important US inflation data.

"Crude oil prices weakened as energy traders anticipated the prospect of potentially weaker crude demand as key inflation reports could force the Fed to tighten policy much more aggressively," said Edward Moya, senior analyst at OANDA, referring to U.S. consumer price data due on Feb. 14.
 
Meanwhile, the United States central bank (the US Fed) has raised interest rates to control inflation, which raises concerns that the move will slow economic activity and oil demand which could depress prices.
 
In addition, the resumption of Azerbaijani oil exports on Sunday at Turkey's Ceyhan terminal also eased supply concerns, said analyst Tina Teng at CMC Markets.
 
Nevertheless, in the next week, crude oil prices will still receive upward support amid increasing demand from China. While the upward push is also because Russia will cut oil production by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said on Friday, following Western bans on Moscow's crude and oil products implemented in recent months.
 
The announced production cuts amount to about 5% of Russia's latest crude oil production, which the Paris-based International Energy Agency estimates fell to 9.77 million barrels per day in December.
 
Fundamentally, demand from China and also restrictions on Russian crude oil production could support the rise in oil prices. Then how technically, see the following analysis:
 
Technical Analysis



Oil prices in the 1-hour period are in a consolidation phase, to fall further it is necessary to break the 78.00 area to the support level of 76.36. The decline in oil was supported by the RSI which is already in the overbought area. Meanwhile, for further bulls, it is necessary to cross the 80.00 level, testing the resistance area at 82.04.
 
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.