On Thursday (July 3) during the Asian session, US crude oil prices fell slightly, giving up the gains of the previous day, and are currently trading around $66.8 per barrel. The unexpected increase in US crude oil inventories is the main factor in this round of correction. According to data from the US Energy Information Administration (EIA), as of last week, US crude oil inventories increased by 3.8 million barrels, totaling 419 million barrels, while the market had generally expected a decrease of 1.8 million barrels, showing that the weakness on the demand side exceeded expectations.

However, oil prices rose on Wednesday, mainly driven by geopolitical and trade factors. The Iranian parliament passed a bill to suspend cooperation with the United Nations verification agency, which once again exacerbated tensions in the Middle East, causing the market to worry that the escalation of the conflict would affect crude oil supply. In addition, the trade agreement reached between the United States and Vietnam also provided some support to the market. The agreement sets a 20% tariff on some Vietnamese export products. Although the intensity is high, the agreement itself sends a signal of trade stability, boosting market confidence in the recovery of global economic demand.

Crude oil shows signs of short-term weakness at the daily level. Although there was a strong rebound in the previous trading day, the price encountered resistance near the 50-day moving average (about $67.50), indicating that the upper pressure is still obvious. The current K-line forms a small positive line with a long upper shadow, suggesting that there is selling pressure at a high level. The 14-day relative strength index (RSI) hovers around 50, and no obvious bullish momentum has been formed.

The current technical pattern of crude oil short-term (1H) level has begun to gradually weaken, and there may be some room for adjustment in the short-term trend. There is a high probability that the trend of shock repair will be maintained during the day. In summary, today's crude oil operation suggestions: long near 66-66.1, stop loss 65.3, or short near 68-68.1, stop loss 68.8.

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.