May 7th Crude Oil Analysis

Crude oil currently remains in a weak oscillation pattern. Overnight, breakthrough news from US-Iran talks caused geopolitical risk sentiment to quickly cool down, directly erasing previous risk premiums in oil prices. Coupled with Iraq's significant price cuts impacting export markets, expectations of loosening OPEC+ production cuts, and an unexpected increase in US crude oil inventories, multiple bearish factors have combined to suppress oil prices from rising.
On the demand side, global economic recovery is diverging, with weak manufacturing in Europe and the US, and domestic demand remaining steady, making it difficult to generate strong support. From a technical perspective, oil prices broke down from high levels, with moving averages in a bearish alignment, indicating a short-term downward trend. Overall, the market is oscillating with a bearish bias, with heavy resistance above and key support levels below to watch. In the short term, the focus is on rebound opportunities for shorting.
Daily chart: A large bearish candle broke down, falling below the key psychological level of 100, indicating a short-term trend weakening.
Four-hour chart: A double top has formed at high levels, with moving averages in a bearish alignment, and MACD showing a death cross downward, continuing the weakness.
Trading suggestion: 98-110 range, targeting 93-80.