In early Asian trading on Friday (May 23), U.S. crude oil fell and traded around $60.78 per barrel. The primary factor that put pressure on oil prices was the strengthening of the U.S. dollar. According to market surveys, the U.S. House of Representatives passed the tax cut and fiscal spending bill proposed by President Donald Trump, boosting the exchange rate of the U.S. dollar against a basket of currencies. Since oil is priced in U.S. dollars, a stronger dollar usually suppresses the purchasing power of non-dollar buyers, thereby depressing oil prices.

According to Bloomberg, the oil-producing alliance OPEC+, composed of the Organization of Petroleum Exporting Countries (OPEC) and its allies, is discussing whether to increase production significantly again at the meeting on June 1. According to the report, delegates at the meeting said that an increase of 411,000 barrels per day in July is one of the options being discussed, but no final agreement has been reached. This has raised concerns that global supply growth may exceed demand growth.

The crude oil bearish trend continued yesterday. The daily level recorded a small negative line with a long lower shadow, and it rebounded again around 60.0. This level will be regarded as an important support. If it breaks down unexpectedly, the oil price bearish trend will continue.

Overall, the crude oil bearish trend has not broken the upper resistance level in the adjustment, but there is a strong support of 60.0. The trend is still under pressure. Today's layout considers high-altitude and low-multiple. Pay attention to the resistance of 61.5-62.0 US dollars on the top and the support of 60.0-59.0 US dollars on the bottom.

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.