February 4, 2026 WTI Crude Oil Evening Analysis

The market has experienced a recovery after a sharp decline, with a tug-of-war between bulls and bears maintaining a sideways pattern. Evening trading should focus on high selling and low buying within the range, with light positions to avoid chasing rallies or panic selling.

On the news front, geopolitical tensions between Iran and the US continue to push up oil risk premiums. API crude oil inventories fell by over 10 million barrels, providing bullish support. However, Kazakhstan's oil field resumption and the upcoming global refinery maintenance season suggest a supply and demand surplus, limiting upward price movement. The interplay of bullish and bearish factors makes it difficult for the market to establish a clear trend.

Technically, WTI crude oil fluctuated around $63-$64.2 during the day. The 50-day moving average at $62 provides strong support, while the short-term resistance is at $64.2-$64.5. The 1-hour MACD indicator is converging, with momentum bars approaching zero, indicating no clear directional signal and representing a typical consolidation pattern.

Night outlook: Oil prices are likely to continue oscillating within the $63-$64.5 range. Focus on volume changes after the EIA inventory data release. If the price breaks below $63 support, expect a pullback to $62.5-$62. If it breaks above $64.5, there is potential for a short-term test of $65. Use light positions to buy low and sell high within the range, with strict stop-loss settings.

The above is only personal advice for reference and does not constitute investment guidance. Please follow Cheng Jingsheng's layout for specific trading strategies.