During the Asian trading session on Thursday (October 16), oil prices rebounded slightly but remained in a downward trend, trading around $58.30 per barrel. The latest data from the American Petroleum Institute (API) showed that US crude oil inventories increased by 4.6 million barrels in the week ending October 11, far exceeding market expectations of a 250,000-barrel increase. Gasoline inventories decreased by approximately 1.3 million barrels, and distillate inventories fell by approximately 900,000 barrels. The inventory increase reinforced the market's perception of a short-term oversupply, exacerbating downward pressure on oil prices.

In addition, Vortexa data showed that global crude oil reserves stored on offshore tankers increased by 8.9% month-over-month to 93.96 million barrels in the week ending October 10, further reflecting a supply backlog.

On a daily basis, US crude oil prices remain in a downward trend, with the 5-day and 20-day moving averages aligned in a bearish pattern. The MACD fast line continues to decline after crossing below zero, indicating weak market momentum. If prices fall below $58, support could be seen at $56.20. Conversely, if prices stabilize and break above $60, a short-term rebound is possible.

Overall, crude oil prices are trading below the 20-day moving average, indicating a bearish bias. Focus on the $60 resistance level for the day, while the $57 support level is expected.

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.