[Bitop Market Review] Crude Oil Strategy Analysis

08/12/2023 10:29:22

When will oil prices rebound? Analysis of today's crude oil market!

On Friday (December 8th) during the European session, the recent oil market continues to draw attention with trading prices hovering around $70.60 per barrel. According to data released by the U.S. Energy Information Administration on Wednesday, gasoline inventories increased by 5.4 million barrels last week, reaching 223.6 million barrels, significantly surpassing the expected 1 million barrels. This unexpected increase might have exerted pressure on crude oil prices.


Chinese customs data revealed a 9% year-on-year decline in crude oil imports for November, attributed to high inventory levels, weak economic indicators, and slowed orders from independent refineries, weakening demand. On Thursday this week, the world's two largest oil-exporting nations, Saudi Arabia and Russia, urged OPEC+ member countries to collectively cut production. Meanwhile, the United States, being the largest oil-producing nation, continues to maintain high production levels. These developments are anticipated to have pressured the crude oil market. Investors need to pay attention to recent economic data releases in the U.S. and international market information.


Yesterday, crude oil prices traded at lower levels with increased volume, marking the fifth consecutive day of declines, displaying a weak downward trend. Following a period of consolidation, the unidirectional downward trend appears poised to accumulate potential downside momentum.


Considering the overall analysis, it's suggested that today's crude oil trading strategy primarily focuses on long positions after pullbacks, with shorting on high rebounds as a secondary strategy. Regarding resistance levels, attention is on the $72.0-73.0 range, while support levels are monitored around $69.0-68.0 in the short term.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.