On Wednesday (December 3rd) in Asian trading, US crude oil traded around $58.67 per barrel. Oil prices fell more than 1% on Tuesday, with the market weighing between wavering hopes for peace between Russia and Ukraine and persistent concerns about oversupply. These concerns were partly offset by the weekend's attacks on Russian infrastructure and tensions between the US and Venezuela. Trump's announcement over the weekend to close airspace around Venezuela has introduced new uncertainty to the export prospects of this major oil-producing country.

Furthermore, according to the latest data, US commercial crude oil inventories unexpectedly increased by 2.48 million barrels this week. This contrasts sharply with earlier market expectations of a decline in inventories. Increased inventories are generally seen as a signal of weak demand or oversupply, putting pressure on oil prices.

From a daily chart perspective, after breaking below the $60 mark, oil prices have clearly broken through the short-term moving average support zone and touched the lower edge of the nearly one-month consolidation range. Recent consecutive bearish candlesticks indicate that bearish forces dominate the market, with the MACD histogram continuing to expand below the zero line, reflecting a continued weak trend.

Crude oil's short-term (1-hour) trend has turned downwards in a volatile manner. The moving average system is suppressing oil prices, forming a bearish alignment, and the short-term objective trend is downward. The MACD indicator has crossed below the zero line and is widening downwards, indicating that bearish momentum is dominant. It is expected that crude oil will likely fluctuate downwards during the day. Today: Short at 59.20, stop loss: 59.70, target 58.20.

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.