On Thursday (December 4th) in Asian trading, US crude oil rose slightly, trading around $59.15 per barrel. This was mainly due to the lack of substantial progress in geopolitical tensions, which perpetuated expectations of tight supply. The lack of a breakthrough in peace talks between Russia and Ukraine means that related sanctions may remain in place for a considerable period, thus continuously constraining global crude oil supply.

An unexpected increase in EIA inventories triggered market concerns about ample supply pressure. The latest data from the US Energy Information Administration showed that US commercial crude oil inventories increased by approximately 574,000 barrels in the most recent week, while the market had previously expected a decrease of approximately 2 million barrels. Although geopolitical factors continued to provide support, the increase in inventories and the pressure of supply growth prevented oil prices from breaking through, resulting in a tug-of-war between bulls and bears.

From a daily chart perspective, US crude oil prices continued to fluctuate within the $58-$60 per barrel range, indicating that the bulls and bears are unlikely to gain the upper hand in the short term. Support has repeatedly formed below $58, indicating continued buying interest; however, significant resistance exists above $60, forming a strong resistance level for this phase. Technically, moving averages are flattening, and the MACD is repeatedly converging near the zero line, suggesting insufficient trend direction.

Crude oil is currently trading within a range (1H), fluctuating between $60.00 and $58.30. In the early morning, oil prices were in the middle of this range, with the MACD indicator showing a tug-of-war between bullish and bearish momentum, indicating no clear trend direction. It is expected that crude oil will likely continue to trade within this range throughout the day, maintaining a range-bound trading strategy. Today's strategy: Short at $59.70, stop loss at $60.10, target $58.50.

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.