Crude oil message surface analysis: On Friday (December 29), crude oil prices traded near $71.32 / barrel in the US market, as more shipping companies expressed willingness to go through the Red Sea route, concerns about supply disruptions caused by escalating tensions in the Middle East eased, and the market focused on the US Energy Information Administration's weekly report on crude oil and refined product inventories, crude oil futures traded lower. Major shipping companies stopped using the Red Sea route and the Suez Canal earlier this month after Houthi militants in Yemen began attacking ships. At the same time, the US-led coalition aimed at easing tensions in the Red Sea has yet to produce the hoped-for concerted action. Analysts said that while the attacks on ships in the Red Sea may keep markets on edge, signs of an increase in U.S. crude inventories could put downward pressure on crude prices.
In the United States, EIA Strategic Petroleum Reserve inventories for the week ending December 22 recorded their largest increase since the week ending September 1, 2023. U.S. EIA Strategic Petroleum Reserve inventories for the week ending December 22 were the highest since the week ending June 2, 2023. The decline in EIA crude oil inventories in the week to December 22 was the largest since the week to August 25, 2023. Gasoline inventories in the U.S. Midwest rose last week to their highest level since April 2022. Total US exports of petroleum products rose to an all-time high in the latest week. Equipment utilization in the U.S. Midwest rose to a record high in the latest week. Peter Smith, chief markets economist at Spartan Capital, said: Cardillo noted that the inventory increase reported by API was unexpected news. If later data from the U.S. Energy Information Administration shows an inventory build, it would mark the second straight week of unexpected inventory increases, which would be bearish for oil prices.
Crude oil technical analysis: crude oil closed lower on the bardo line last Friday, and the daily line closed on the bardo line for two consecutive trading days, breaking the previous collated upward pattern. At the same time, the space of the rising mid-positive line at the beginning of the week was fully recovered, falling below the inter-cell low of 72.30. The daily line closed lower, the short line went back down, and the intra-day weekly line closed. The closing of the third week is crucial, and the recovery of negative lines is followed by a new decline. After the 4-hour chart lost the middle rail, relying on the middle rail as a resistance pressure shock, broke the lower rail of the finishing interval at the beginning of the week, and the intra-day short-term line first looked at the continuous fall. On the whole, crude oil on Tuesday's opening operation ideas suggested to rebound high altitude, back to the low more than supplemented, above short-term attention 72.5-73.0 line resistance, below short-term attention 70.0-69.5 line support.
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