Crude Oil News Analysis:

In early Asian trading on Thursday (September 5th), international oil prices fluctuated in a narrow range, with U.S. crude oil currently trading around $69.52 per barrel. Crude oil futures traded in a volatile manner on Wednesday, settling down more than $1 and hitting a new low since mid-December last year. The market is concerned about crude oil demand in the coming months, and mixed signals from oil producers about increasing supply further exacerbate the market's wait-and-see sentiment.

Brent crude oil futures fell $1.05, or 1.42%, to close at $72.70 a barrel on Wednesday. U.S. crude oil futures fell $1.14, or 1.62%, to close at $69.20 a barrel.

The number of job openings in July released by the U.S. Department of Labor fell to its lowest level in three and a half years, and the decline was larger than expected, indicating that the U.S. labor market is losing momentum. The Beige Book on economic conditions released by the Federal Reserve also showed that the U.S. economic expansion slowed somewhat from mid-July to late August.

Data from the American Petroleum Institute (API) showed that U.S. crude oil inventories fell sharply by 7.431 million barrels in the week ended August 30, gasoline inventories fell by 336,000 barrels, and distillate inventories fell by 406,000 barrels, all of which provided some support for oil prices.  

Tonight, we need to pay close attention to the release of the U.S. Energy Information Administration (EIA) report, as well as August ADP employment data, changes in the number of people claiming unemployment benefits for the first time, the August ISM non-manufacturing PMI, and news related to the geopolitical situation.

Crude Oil Technical Analysis:

From the daily chart of crude oil, the medium-term trend still maintains a volatile consolidation rhythm. 72 provides effective support for oil prices. Crude oil rebounded upwards after gaining support at the bottom of the range. The K-line has closed with a big positive line for two consecutive trading days, indicating that the bullish momentum is gradually becoming stronger. It is expected that the medium-term trend will still rebound upward within the range. The short-term (1H) trend of crude oil shows a bottoming rebound rhythm. The oil price is still suppressed by the moving average system, and the short-term objective trend direction is downward. From the perspective of momentum, the long and short sides are in a stalemate, and the oil price is expected to form a secondary shock range at the bottom. It is expected that the crude oil will maintain a bottom adjustment rhythm within the day, and the main idea is still to be bearish.

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 70.5-71.0, and the key support level to watch in the short term is 68.0-67.5.

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