On Tuesday (January 13th) during the Asian session, WTI crude oil traded around $59.71 per barrel. Oil prices climbed to a seven-week high on Monday, mainly due to market concerns about a potential decline in Iranian oil exports. The country is facing internal protests, and US President Trump has indicated he may take measures, including military action, to pressure the Iranian leadership. Meanwhile, geopolitical risks in Russia and Venezuela also contributed to price volatility.

Despite rising geopolitical risks, the global crude oil market remains generally well-supplied. With OPEC+ and major oil-producing countries in the Western Hemisphere increasing production, global crude oil inventories continue to rise, putting some downward pressure on medium- to long-term oil price trends. Market surveys indicate that the current rise in oil prices reflects more of a concentrated release of geopolitical risk premiums than a fundamental reversal in supply and demand fundamentals. This also means that oil prices may face increased volatility at high levels.

From a daily chart perspective, WTI crude oil is generally showing an upward trend with fluctuations. The price has broken through the upper limit of the previous consolidation range and is firmly trading above the short-term moving averages, indicating a significant increase in bullish momentum. The moving average system is gradually turning bullish, providing support for the price.

Overall, as momentum indicators are not significantly overbought, oil prices are expected to remain bullish in the short term, but the risk of high-level volatility is accumulating. Today's trading strategy for crude oil is recommended to primarily focus on buying on dips, with selling on rallies as a secondary approach. The short-term resistance level to watch is 60.0-61.0, and the short-term support level is 57.5-56.5.

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.