On Thursday (April 16th) during Asian trading, US crude oil prices retreated, trading around $87.93 per barrel, mainly influenced by market expectations of easing tensions between the US and Iran. Market surveys indicate that both sides are considering extending the current ceasefire for approximately two weeks to allow more time to reach a long-term agreement.

Meanwhile, mediators are actively pushing for compromises on key issues such as passage through the Strait of Hormuz and the nuclear issue, significantly easing market concerns about oil supply disruptions. The price decline reflects a temporary easing of market risk premiums, especially after the previous rapid price increases driven by geopolitical tensions, leading some long positions to take profits.

From a daily chart perspective, crude oil prices have entered a consolidation phase. The pullback from the highs has not resulted in a trend reversal. The current key level is around $95, which also serves as an important reference for the strength of the medium-term trend. If prices continue to trade below this level, it indicates weakening upward momentum. Key support lies around $82, a previous consolidation platform and a significant buying support level. A break below this level could open up further downside potential.

Crude oil is currently consolidating at low levels (1H), without making new lows. The overall trend is minor, with a downward bias. Oil prices remain suppressed by the moving average system, and the short-term objective trend remains downward. Crude oil is expected to fluctuate downwards during the day, testing the previous low near $87. In summary, the trading strategy for crude oil today is to focus on the resistance level of $98.0-$103.0 and the support level of $85.0-$80.0.

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.