Crude Oil News Analysis:

International oil prices were trading in a narrow range in early Asian trade on Wednesday, October 2nd, with WTI crude hovering around $70.91 per barrel, holding onto overnight gains. Oil prices surged by over 5% on Tuesday after Iran launched a series of ballistic missiles towards Israel in retaliation for Israeli strikes against its Hezbollah allies in Lebanon. Israel has pledged to respond to the missile attacks, raising fears of a broader conflict in the Middle East and providing strong upward momentum for oil prices.

Before news broke of the planned Iranian missile strikes, oil prices were trading near two-week lows on the back of expectations for increased supply and concerns about weak global demand growth, which outweighed worries about escalating tensions in the Middle East and their potential impact on crude exports from the region. However, following the news, oil prices staged a dramatic reversal, with intraday gains exceeding 5% at one point. WTI crude briefly touched $66.93 per barrel before surging to an intraday high of $71.94, a range of $5.01.

Brent crude futures rose 3.55% on Tuesday to settle at $74.37 a barrel, while US crude gained 3.62% to close at $70.76. Earlier in the session, both benchmarks had rallied by more than 5%.

The US Energy Information Administration (EIA) is due to release its weekly inventory data on Wednesday. Surveys suggest US crude oil inventories are expected to have fallen by about 1.3 million barrels last week. Market participants will also be watching for the release of the US September ADP employment report today. Furthermore, attention will remain on any further developments in the geopolitical situation and any statements from Federal Reserve officials.

Crude Oil Technical Analysis:

Daily Chart: Crude oil prices rebounded from their lows yesterday, finding support around $66.3 before rallying and consolidating near $70.4. On the daily chart, the medium-term downtrend reached a low of $65.50 before encountering support and staging a short-term recovery. The daily chart shows a pattern of alternating bullish and bearish momentum, with bullish momentum currently gaining traction.

Looking at the moving averages, they are still suppressing oil prices, and the objective medium-term trend remains bearish.

4-Hour Chart: On the 4-hour chart, oil prices are consolidating in a range-bound pattern. The overall rhythm shows an increase in slope and amplitude, transitioning from a decline to a sideways movement. The current short-term objective trend for crude oil is range-bound consolidation. A key level to watch is $72.4; a decisive break above this level would signal further upside potential.

Overall: Today's trading strategy for crude oil suggests prioritizing buying on dips and selling on rallies. Key resistance is situated at 72.0-72.5, while key support is located at 69.7-69.2.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.