Crude Oil News Analysis:

On Monday (September 2), international oil prices continued their downward trend in the early Asian session, with U.S. crude oil hitting a new one-week low of $72.96 per barrel. Oil prices plunged more than 3% on Friday, erasing all of Thursday's gains, as the market assessed the prospect of increased OPEC+ supply from October and the diminishing hope of a significant rate cut in September despite strong U.S. consumer spending data. In addition, the release of China's official manufacturing PMI for August, which hit a six-month low, also weighed on oil prices.

On Friday, Brent crude oil futures for October delivery closed down $1.14, or 1.43%, at $78.80 per barrel. U.S. crude oil futures fell $2.36, or 3.11%, to $73.55 per barrel.

On Tuesday, the ISM Manufacturing PMI and the final S&P Global PMI will be released. On Wednesday, factory orders, JOLTS job openings, trade balance data, and the Fed's Beige Book will be released. On Thursday, there will be ADP's August employment report, weekly jobless claims data, and the ISM Services PMI. The U.S. non-farm payrolls report will be released on Friday.

Crude Oil Technical Analysis:

Crude oil continued its downward trend yesterday, retesting the 86.0 low and returning to a weak consolidation at low levels. The intraday short-term performance was also weak, with the daily chart closing with a three-day negative trend. However, the three-day negative trend is at a low level, and today is the closing of the weekly chart. The short-term trend will still contend for the 85.80-86.0 low. Although the short-term trend seems weak, the weekly chart has not yet completely turned around. It is common to see some wash-outs before the turnaround, which is the reason for the repeated tug-of-war in this wave of decline. The small cycle is weakening, but the large cycle is still in a high-level tug-of-war, and the weekly chart does not rule out the possibility of continuing to close in a volatile manner. After the three-day negative decline on the daily chart, it touched the lower track of the Bollinger Bands, and yesterday there was some support for the first time. It is also the defense at the previous low point, and it is expected that the Asian session today will first rebound. According to the double top short pattern of the decline, the resistance level is 88.6-89. However, since the previous sharp decline was not involved, this rebound short is also of little significance.

Overall, the idea for crude oil trading today is to mainly focus on shorting on rallies and supplementing with long positions on dips. The key resistance level to watch in the short term is 89.5-90.0, and the key support level to watch in the short term is 85.9-85.4.

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