On Thursday (November 20th), during the Asian session, US crude oil fluctuated slightly, trading around $59.45 per barrel. The short-term decline reflects significant selling pressure in the market due to multiple factors. The primary factor influencing the market was the strong rebound of the US dollar index. The dollar's rise to a two-week high weakened the attractiveness of dollar-denominated commodities, suppressing bullish sentiment.

Although crude oil inventories decreased by 3.43 million barrels, higher than the market expectation of 2 million barrels, this positive factor was completely offset by significant increases in gasoline and distillate fuel inventories. Gasoline inventories unexpectedly increased by 2.3 million barrels, far exceeding the market's expectation of a small increase of only 50,000 barrels; distillate fuel inventories also bucked the trend, rising by 171,000 barrels, while the market had previously expected a significant reduction in inventories. Overall, US refined product inventories are at relatively low levels in recent years, but the short-term inventory accumulation process has forced the market to reassess actual demand capacity on the consumption side.

From a daily chart perspective, WTI crude oil continues its weak trend. Prices are moving along a short-term downward channel, and yesterday's large bearish candlestick broke below both the 10-day and 20-day moving averages, indicating that selling pressure is clearly dominant. The RSI has fallen into the neutral-to-weak zone, and momentum indicators continue to slope downwards, suggesting that bearish forces still dominate the market.

If oil prices further break below the key support zone of $58.50 to $59.00, it could open up downside potential towards $56. If a rebound occurs, it needs to regain a foothold above $61.00 to reverse the current weak trend. Today: Buy at $59.00, stop loss at $58.30, target $61.00.

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.