On Monday (July 20th), Asian trading opened with a gap up, with prices briefly reaching around $83.50 per barrel. The main factor driving the price increase was the further escalation of tensions between the US and Iran, with renewed market concerns about potential disruptions to Middle Eastern oil supplies.

Over the past few weeks, risk sentiment in the oil market has continued to rise. As the previous phase-one easing agreement between the US and Iran gradually failed, the US tightened restrictions on Iranian ports, and regional shipping security risks increased, leading investors to price in supply disruptions. So far in July, US crude oil has risen by nearly 20%, becoming one of the strongest performing commodities recently. Investors are currently most concerned about whether Middle Eastern energy transportation routes will be further affected. The region plays a crucial role in global crude oil supply transportation, and any shipping disruptions could quickly fuel market expectations of supply shortages. Especially with global crude oil inventories at relatively sensitive levels, supply-side uncertainty can easily amplify oil price volatility.

From a daily chart perspective, WTI crude oil has recently formed a clear upward trend, with prices rising rapidly after breaking through the previous consolidation range, indicating a significant increase in bullish momentum. Technically, the daily MACD continues to expand upwards, and short-term moving averages maintain a bullish alignment, showing that market momentum remains biased towards buyers. However, after continuous gains, profit-taking pressure should be watched out for.

In the short term (1H), WTI crude oil broke through the consolidation that had lasted for several days, reaching a new high near 84. The moving average system is in a bullish alignment, indicating a short-term objective trend upwards. Based on the principle of alternating primary and secondary trends, the primary trend is also upwards. Bullish momentum is more dominant. It is expected that crude oil will maintain its bullish trend today. Today: Buy at 81.00, stop loss at 80.00, target 85.00.

Disclaimer: The article is contributed by the market analyst from Binkex 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.