On Friday (May 16) in the Asian session, international oil prices fluctuated narrowly, and Brent crude oil is currently trading around $64.58 per barrel. Oil prices plunged more than 2% yesterday, triggered by US President Donald Trump's statement that the US is "close" to a nuclear agreement with Iran and claimed that Tehran has "somewhat" accepted the terms of the agreement. But according to a source familiar with the negotiations, the two sides still have key differences that have not been resolved.

Oil prices rose sharply at the beginning of this week as global trade concerns eased. The Asian giant and the United States, as the world's top two oil consumers and economies, reached a 90-day "tariff suspension period." This means that the previous fierce tariff measures will be temporarily terminated, helping to ease expectations of a global economic slowdown and weak oil market demand. At present, the crude oil market is still dominated by supply dynamics, and any resumption of Iranian supply may quickly change market trends.

The daily level of US crude oil shows that the price is supported near the $60 mark and is currently trying to return to the short-term moving average. The K-line formed a long lower shadow in the previous trading day, indicating that the buying below is relatively active, and the short-term rebound is expected to continue. The MACD indicator maintains a dead cross state, but the green column momentum begins to shrink, and the RSI indicator is in a neutral area, reflecting that the long and short are still in a tug of war. If the oil price can effectively break through the $62 resistance level, it may be expected to further rise to the $64 area; on the contrary, if it falls below $60, it may trigger further technical corrections.

Overall, the current trend is volatile and needs to pay attention to the further guidance of macro news in the face of trends. On the whole, the operation strategy of crude oil today is mainly based on rebounding high and low, supplemented by stepping back low. The short-term focus on the 63.0-64.0 line resistance on the upper side and the short-term focus on the 60.0-59.0 line support on the lower side.

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.