On Tuesday (December 30th) during the Asian session, US crude oil traded around $57.77 per barrel. International oil prices rose significantly on Monday, with renewed geopolitical tensions being the main driving factor. New variables in the conflict between Russia and Ukraine, and escalating tensions in Yemen raising concerns about Middle Eastern oil supply, jointly boosted market risk premiums.

However, from a supply and demand perspective, the upside potential for oil prices remains limited. The Organization of the Petroleum Exporting Countries (OPEC+) and its allies have decided to slightly increase production in December, with an increase of approximately 137,000 barrels per day. Against the backdrop of insufficient demand recovery momentum, market concerns about a temporary oversupply of global crude oil remain.

From a daily chart perspective, US crude oil prices are still in a low-level consolidation phase after a medium-term downtrend. Prices have been falling continuously from their highs and are currently trading near the lower edge of a descending channel, indicating that downward momentum has slowed, but a clear reversal pattern has not yet formed. Prices remain constrained by the 20-day and 50-day moving averages, with short-term moving averages flattening, indicating the market is in a consolidation phase.

Crude oil's short-term (1-hour) chart shows a bottoming-out rebound, recovering two-thirds of the previous decline. Oil prices have crossed the moving average system, suggesting a short-term consolidation phase with a range between 56.60 and 59.00. Momentum is shifting rapidly between bullish and bearish, and crude oil is expected to fluctuate within a wide range today. Today's strategy: Short at 58.50, stop loss at 59.00, target 57.30.

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.