On Friday (January 2nd) during the Asian session, US crude oil fluctuated upwards, currently up about 0.78%, trading around $57.87 per barrel. This rise stems from the market digesting the complex situation at the beginning of the year—including the Ukrainian drone attack on Russian energy facilities and the US reimposing sanctions on Venezuela, both of which will directly impact global oil supply flows.

Prior to this rise, the crude oil market experienced a dismal 2025, with both US crude oil and Brent crude oil, the two major benchmarks, falling by nearly 20% annually. Brent crude oil recorded its worst performance since 2020, marking its third consecutive year of decline, the longest losing streak on record. Despite occasional geopolitical risks throughout the year (such as the ongoing Russia-Ukraine conflict and Middle East tensions), oversupply and slowing demand growth dominated bearish market sentiment for most of the time.

From a daily chart perspective, US crude oil remains in a weak consolidation pattern. After a significant drop, prices are trading below medium- and long-term moving averages, with the daily moving average system showing a bearish alignment, reflecting an overall downward trend. Recent price action has seen repeated fluctuations within a low range, indicating a slowdown in downward momentum, but no clear reversal signal has yet formed. Technically, the RSI is hovering near low levels; although it has moved out of extreme oversold territory, it remains below 50, suggesting limited bullish strength.

In the short term, the $56 area provides initial support, while the previous rebound high and the declining 5-day and 10-day moving averages act as resistance. If prices cannot effectively hold above $59, the daily chart for US crude oil remains bearish and range-bound. Crude oil trading recommendations: Resistance: $58.00, $58.30, $58.80; Support: $57.30, $57.00, $56.60.

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.