On Friday (May 2) in the Asian market, US crude oil traded around $58.88 per barrel. Oil prices closed up more than 1% on Thursday. Earlier, after the postponement of the fourth round of US-Iran talks, US President Trump said that all purchases of Iranian oil or petrochemical products must be stopped, and any country or individual who purchases oil or petrochemical products from Iran will be immediately subject to secondary sanctions. Oil supply concerns support oil prices.

In addition, the eight OPEC+ countries will hold a meeting on May 5 to decide on their production plans for June. At the same time, sources told Reuters that Saudi Arabia is telling allies and industry experts that it is unwilling to support the oil market by cutting supply and can cope with long-term low prices.

The short-term (1H) trend of crude oil has continued to decline, and oil prices have continued to hit new lows. The moving average system diverges and runs downward, and the short-term objective trend direction is downward. In the early trading, oil prices touched around 60. From the perspective of downward momentum, no strong rebound has been formed. The overall short-selling momentum is still dominant, and it is expected that the crude oil trend will continue to decline during the day.

On the whole, the operation strategy for crude oil today is recommended to rebound high and supplemented by falling back to low. In the short term, pay attention to the 60.0-61.0 resistance line on the upper side, and pay attention to the 57.5-56.5 support line on the lower side.

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.