On Wednesday (December 10th) in Asian trading, US crude oil traded around $58.40 per barrel. Market sentiment became cautious under the dual pressure of a strong dollar and supply recovery. The latest JOLTS report released by the US Bureau of Labor Statistics showed that job openings in September and October reached 7.658 million and 7.67 million respectively, both higher than market expectations, indicating the resilience of the US labor market. This led to a temporary rebound in the dollar, directly weakening the performance of dollar-denominated commodities.

On the supply side, major Iraqi oil fields resumed production, cooling global market expectations of a supply gap. Supply also put downward pressure on oil prices. The West Qurna-2 oil field in Iraq, which had temporarily suspended production due to a pipeline leak, resumed crude oil transportation after the weekend, with crude oil flowing back to the Tuba main storage terminal. This oil field, operated by energy company Lukoil, produces over 460,000 barrels per day, accounting for approximately 0.5% of global supply and about 9% of Iraq's total production. The resumption of production has temporarily eased supply risks in the Middle East, reducing previous market concerns about supply tightness.

From a daily chart perspective, and more specifically at local levels, crude oil is currently in a minor consolidation phase, with alternating bullish and bearish candlesticks, testing the previous low near 56. The MACD indicator is hovering near the zero line, indicating weak bearish momentum. A break below the strong support level of 56 would signal a medium-term downtrend for crude oil.

In the short term (1H), crude oil is being pressured by the moving average system, continuing its decline to a new low near 58.15. The short-term objective trend remains downward. The MACD indicator is below the zero line, indicating dominant bearish momentum. Oil prices are currently in a minor consolidation phase at low levels. Based on the alternation of major and minor consolidation, crude oil is expected to maintain a downward trend throughout the day. Today's strategy: Short at 58.70, stop loss at 59.20, target 57.70.

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.