In the early Asian session on Wednesday (January 8), international oil prices fluctuated slightly higher, approaching the three-month high set on Monday. US crude oil is currently trading around $74.71 per barrel, up about 0.6%; Brent crude oil is currently trading around $77.37 per barrel, up about 0.35%. Oil prices closed more than 1% higher on Tuesday, mainly driven by concerns about supply constraints in Russia and Iran due to Western sanctions and expectations of increased demand from Asian powers.

Data from the American Petroleum Institute (API) showed that crude oil inventories fell by 4.02 million barrels, gasoline inventories increased by 7.33 million barrels, and distillate inventories increased by 3.2 million barrels in the week ending January 3. In addition, OPEC oil production fell in December after two consecutive months of growth due to a decline in oil production in the UAE due to oil field maintenance and a decline in Iranian oil production. These factors provide support for oil price bulls.

Crude oil stabilized yesterday, stabilizing and rising around $73.0, with the highest point hovering around $74.2. From the daily level of crude oil, the price of oil is suppressed by the inverted hammer line, indicating that the upper resistance level is strong, and the upward space can be opened after further breakthrough.

From the four-hour level, after stabilizing in the 66.7 area, there was a wave of upward breakthrough waves, and there was an additional stage near 74.8. In the future, the oil price will either continue to break through, or fluctuate and run in a high range. On the whole, the operation strategy of crude oil today is recommended to focus on low-level longs and rebound high-level shorts. Pay attention to the resistance of 75.8-76.3 on the upper side in the short term, and pay attention to the support of 73.7-73.2 on the lower side in the short term.

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.