On Monday (December 29th) during the Asian trading session, US crude oil traded around $57.10 per barrel. Asian governments signaled more proactive fiscal policies in 2026, emphasizing their continued commitment to stabilizing and promoting economic growth through policy measures despite a challenging external environment. Improved demand prospects in Asian countries provided some support for oil prices. Currently, investors are awaiting the American Petroleum Institute (API) crude oil inventory data to be released on Tuesday for new trading guidance.

Regarding geopolitics, the US-led negotiations on the Russia-Ukraine conflict have not yet achieved a substantial breakthrough, which has also limited market expectations for a rapid return of Russian crude oil supply. US President Trump stated that he and Ukrainian President Zelensky have made some progress on a potential peace agreement, but no significant breakthrough has been seen on key territorial issues, and the process may still take several weeks. This uncertainty provides some support for oil prices in the short term.

From a daily chart perspective, WTI crude oil prices have been consolidating in a low-level range after a rapid decline, currently still under pressure from the downward trend. The daily candlestick chart shows that WTI found temporary support around $56, a level close to previous lows, where short-term buying has begun, but the rebound has been limited.

The short-term (1-hour) trend for crude oil has turned downwards, with nine consecutive bearish candlesticks, demonstrating strong downward momentum and continuity. The moving average system is bearish, indicating a downward objective trend in the short term. Oil prices rebounded weakly around $56.60 in the early morning, with bearish momentum dominating. It is expected that crude oil will maintain a downward trend throughout the day. Today's strategy: Short at 57.50, stop loss at 58.10, target at 56.00.

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.