On Tuesday (May 6) in the Asian market, U.S. crude oil traded around $57.10 per barrel. Oil prices closed at a multi-year low on Monday. OPEC+ announced that it would further increase production by 411,000 barrels per day in June, which was the second consecutive month of expansion of production capacity, triggering market concerns about oversupply. Brent crude oil futures closed at $60.23 per barrel, down 1.7%. U.S. crude oil futures closed at $57.13 per barrel, down 2%. Both indicators of oil prices hit a new low since January 2021.

OPEC+'s decision to increase production was intended to stabilize the market, but it has exacerbated the imbalance between supply and demand in the short term. Against the backdrop of slowing global economic growth and sluggish demand in Asian countries, this strategy may lead to long-term price pressure. U.S. oil companies are being forced to re-examine their production capacity strategies, and the market may witness a new round of industry consolidation. Investors need to pay attention to the reactions of various countries to the new OPEC+ strategy, especially under the premise that global demand has not yet recovered significantly, the repair of the crude oil market may take longer.

The daily level of crude oil shows that the price is currently running near the key support level of $57 per barrel. This position is an important technical support area since 2021. If it falls below this point, it may further fall to $55 or even lower. The relative strength index (RSI) has approached the oversold range. There is a possibility of a technical rebound in the short term, but the overall trend is still bearish. If the resistance above $60 is not effectively broken, the rebound height of oil prices may be limited, and the market needs to be vigilant about the risk of continued downward movement.

In summary, crude oil fluctuates at a low level, and there is a probability of filling the gap. It is expected to rise first and then fall. In terms of today's operation, consider retreating to arrange long orders first, supplemented by high-altitude. Pay attention to the resistance of $58.3-59.2 above and the support of $56.5-55.5 below.

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.