Jakarta, GIC Trade – World oil prices on Wednesday, March 1, 2023 rose for a second day boosted by a report on manufacturing activity growth in China, the world's largest crude oil importer, boosting the outlook for global fuel demand.

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world oil price (March 1, 2023)
Oil prices continue to be supported by expectations of strong demand in China. Those expectations were further supported by data showing that China's factory activity rose for the first time in seven months in February, according to a purchasing managers' index published by S&P Global on Wednesday.
 
Official government PMI data, also released on Wednesday, showed the fastest manufacturing expansion since 2012. Nevertheless, the strong demand signal was offset by signs of increasing crude oil inventories in the United States (US), which is the world's largest consumer and oil producer.
 
U.S. oil inventories rose by 6.2 million barrels in the week ended Feb. 24, according to market sources citing American Petroleum Institute (API) figures on Tuesday. However, gasoline inventories fell by 1.8 million barrels and refined fuels, including diesel and jet fuel, fell by 340,000 barrels, according to API data.
 
While official U.S. government data on stocks or inventories will be released on Wednesday. The data is expected to show an increase for 10 consecutive weeks, with analysts in a Reuters poll estimating that the rise of nearly half a million barrels occurred last week.
 
In addition, other signs of an increase in supply can be seen from data from the Organization of the Petroleum Exporting Countries (OPEC). In February, OPEC had pumped 28.97 million barrels per day (bpd), up 150,000 bpd from January. However, output is still down more than 700,000 bpd from September.
 
Fundamentally, world crude oil prices are still supported by an increase in Chinese demand, but soaring inventories are limiting the rise in crude oil prices. Then how technically, see the following analysis:
 
Technical Analysis
 


Oil prices in the 1-hour period tried to move further up, testing the resistance level in the 77.80 area to test the next resistance at 78.99. The increase is also indicated by the MA50 line which has crossed the MA100 line from below. Meanwhile, to change the bias to bearish, the oil price needs to pass the support of 76.76 first to the next support at 75.64.
 
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.