On Friday (August 1st), US crude oil traded around $69.40 per barrel in the Asian session. Despite minimal intraday movement, oil prices still saw significant gains this week: Brent crude rose 4.9% and WTI rose 6.4%.

This rally was primarily driven by the US government's threat earlier this week to impose secondary sanctions on countries purchasing Russian crude oil, particularly those in Asia, which sparked concerns about supply disruptions. Market concerns are that if these secondary sanctions are implemented, Russia's 2.75 million barrels per day (bpd) of seaborne oil exports could be impacted.

The daily chart shows that crude oil prices remain in an upward trend, but momentum has weakened. Prices have remained above the 50-day moving average for several consecutive days. Short-term support lies around $68.50, the upper edge of the previous consolidation range.

A break below this level could trigger a pullback to the $66.80 area. Initial resistance above is $70.50. If it can effectively break through, it is expected to challenge the year-to-date high of $72.20. Overall, the trading strategy for crude oil today is to focus on buying on dips and shorting on rebounds. In the short term, focus on the resistance line of $72.0-73.0 on the upside, and the support line of $68.0-67.0 on the downside.

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.