On Thursday (February 26th) during the Asian session, US crude oil traded around $65.65 per barrel. Data from the US Energy Information Administration (EIA) showed that crude oil inventories surged by 16 million barrels last week, far exceeding analysts' expectations of a 1.5 million barrel increase, mainly due to declining refinery utilization rates and increased imports. However, the US's increased military deployment in the Middle East to pressure Iran into negotiations raised market concerns that a potential military conflict could disrupt oil supplies, limiting the negative impact of the inventory data.

In addition, a new round of nuclear negotiations will be held in Geneva, and US President Donald Trump reiterated that he would not allow Iran to acquire nuclear weapons capabilities, intensifying market concerns about supply disruptions in the Middle East. Meanwhile, Saudi Arabia is reportedly preparing a short-term production increase plan to prevent potential conflict from affecting exports. There are also reports from OPEC+ that a possible production increase of 137,000 barrels per day in April.

From a daily chart perspective, WTI crude oil is currently trading within a medium-term consolidation range, with the core price fluctuation range remaining between $60 and $72. Recent price declines have been limited, indicating that support levels are still in place.

The 20-day moving average is flat, and prices are oscillating around it, suggesting a lack of directional breakout in the short-term trend. The 50-day moving average, around $63, provides medium-term dynamic support. The RSI is near the 50 level, neither in overbought nor oversold territory, reflecting a balanced market sentiment. In summary, today's trading strategy for crude oil is to primarily sell on rallies and secondarily buy on dips. Short-term resistance is expected at $67.3-$68.3, while short-term support is expected at $64.0-$63.0.

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.