During the Asian trading session on Wednesday (October 15th), international oil prices continued their decline from the previous day, with US crude oil trading around $58.60, its lowest closing price in five months. The International Energy Agency (IEA) released a report on Tuesday, stating that the global crude oil market could face a supply surplus of up to 4 million barrels per day by 2026, a significant increase from previous projections. The report stated that OPEC+ members and their competitors are increasing production, while the global demand recovery remains sluggish, which will exacerbate the supply-demand imbalance in the market.

Recently, US President Trump threatened to raise tariffs on Asian goods to 100% starting November 1st and further tighten software export restrictions. Meanwhile, Asian countries announced expanded export controls, further escalating trade tensions. Furthermore, the US and Asian countries have successively imposed surcharges on port and shipping companies. This move has raised market concerns about rising global shipping and energy transportation costs, which will in turn curb crude oil demand.

On a daily basis, US crude oil prices have been trading below their major moving averages for several consecutive days, demonstrating a clear bearish trend. WTI is currently trading near the $58 support range. If this level is broken, the next target could be $56.40, representing previous support. Conversely, a short-term rebound and stabilization above $60 could correct the oversold conditions. The RSI indicator remains below 40, indicating weak market sentiment. Short-term trends remain volatile and bearish.

Overall, the technical pattern resonates with fundamental supply and demand pressures, limiting the potential for a rebound in oil prices. Today's crude oil trading recommendation: short at $59.10, stop-loss at $59.70, target at $57.20.

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.