The prices of oil fell slightly in Asian trading on Wednesday (08/February). When this news was written , Brent oil was slumped by 0.30% and touched the level of $83.81 a barre.

Meanwhile, the WTI crude was down by 0.17 percent at $77.35 a barrel. A situation like that showed the profit-taking impact of the increase that was previously formed due to several factors.

It can be seen that oil prices have been bullish since the beginning of this week. That was due to the prospect of rising Chinese demand. Prices then rose after the heartbreaking news of Turkish earthquake.

The magnitude of 7.8 earthquake also damaged a number of vital facilities such as a port that becomes a terminal for main exports in that country. 

Analysts Believe that Oil will Bullish 

The closure of export terminals in Turkey hampered the shipment of oil. The amount was as much as 1 million barrels per day (bpd). It was a sign that the world's crude oil supply will be tighter.

It is especially amidst the expectations of rising demand from large consumers such as China.  Furthermore, Powell's Statement Weakens the Dollar.

Besides that, the analysts felt about the Bullish Oil. The movement in this commodity prices was also supported by the dovish comments of Federal Reserve Chairman Jerome Powell. 

After announcing a rate hike in line with market expectations last week, Powell recently delivered his latest remarks. That was when he met on a session held lately. 

Powell’s Statement Dissapointed the Dollar Investors 

The figure revealed that the Fed chose to be more patient in monitoring the trend of inflation going forward rather than rushing to a rate hike at its upcoming meeting.

Powell's remarks disappointed Dollar investors who had previously hoped that the Fed would again raise rates aggressively. Moreover, the release of the NFP and the latest US unemployment rate also indicate something. 

It shows a sign that inflation has the potential to rise again. The disappointment resulted in a weakening of the Dollar and was favorable for the prices of commodities such as oil. 

Although today's oil movement tends to correct due to profit taking, analysts are still optimistic about the outlook for this commodity in the near future. It still has a good journey ahead. 

WTI crude Oil Rose Significantly 

James Hyerczyk of FXEmpire revealed that the current fundamental conditions have affected oil supply and demand. Furthermore, this situation supports the near-term rally. 

He also said that this is typical of conditions that Hedge Funds and speculators like to exploit so that they can trigger price action volatility upwards. WTI crude oil prices rose above $77 a barrel.

It was supported by data indicating that United States crude inventories fell by 2.18 million barrels last week, or contrary to expectations of a 2.15 million-barrel increase. 

In addition, oil prices were also supported by the statement of Federal Reserve Chairman Jerome Powell. Based on some releases, he tends to be less hawkish than market expectations. In his latest speech.

Rising Interest Trend Could Continue 

He also said That the trend of rising interest rates could still continue if the labor market remains strong. Nonetheless, he also said inflation is starting to enter a downtrend.

Being very close to the MA-50 curve, price action in the past two days seems to indicate that the US Dollar is losing steam to assert a short-term consolidation phase. 

In fact, the previous price was able to bounce back three consecutive days from a multi-month low. It was supported by labor data and the US service sector PMI released at the end of last week. 

The latest statement by the Fed's chairman, Jerome Powell, is a factor in the way of the US Dollar's recovery. He was perceived as less hawkish on the central bank's monetary policy by again saying that disinflation was ongoing.