On Wednesday (February 25th) during the Asian session, US crude oil traded around $66 per barrel. Market focus shifted from military risks to diplomatic developments, and risk premiums cooled significantly. Previous oil price increases were mainly due to market concerns that the US military deployment in the Middle East could trigger supply disruptions. The Strait of Hormuz, as a vital global energy transport route, handles approximately one-fifth of crude oil exports; any escalation of the situation would quickly transmit the impact to the global market. However, with Iran signaling its willingness to advance negotiations, the situation showed signs of easing.

From a fundamental perspective, supply-side pressures remain. OPEC+ and American oil-producing countries continue to increase production, global inventory levels are rising, while demand growth is slow. The OPEC+ meeting next month may continue to discuss expanding production quotas, indicating that major oil-producing countries are still vying for market share. Against the backdrop of a relatively loose supply and demand structure, oil prices lack solid support for a sustained and significant upward trend.

From a daily chart perspective, WTI crude oil prices are facing significant resistance above $67, with multiple failed rebounds and a gradual downward shift in the price center, indicating a lack of trend-driven buying. Without any unexpected events, oil prices are likely to continue their weak and volatile trend, awaiting further changes in fundamentals.

Overall, the technical structure has shifted from a risk-driven upward trend to a volatile downward trend, with a short-term bearish bias. Therefore, today's trading strategy for crude oil is to primarily sell on rallies, with buying on dips as a secondary approach. The key resistance level to watch in the short term is $67.3-$68.3, while the key support level is $65.0-$64.0.

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.