During the Asian session on December 5, international crude oil prices continued their rally. The price of WTI crude oil futures broke through $60 per barrel, with an intraday increase of 1.79%. The previous trading day, this contract had risen 1.22% to close at $59.67 per barrel. Meanwhile, Brent crude oil futures rose 0.94% to close at $63.26 per barrel. Tensions in geopolitical situations and expectations of Fed rate cuts have formed dual support, driving oil prices into a rebound channel.

At the macro level, the market widely bets that the Federal Reserve will start an interest rate cut cycle next week. Expectations of loose monetary policy have improved the global capital environment, which not only reduces corporate financing costs but also is expected to boost energy consumption demand. Meanwhile, the U.S. dollar index has continued to weaken under pressure, making U.S. dollar-denominated crude oil more cost-effective for international buyers and further stimulating purchasing intentions. According to analysis from Huitong Network, the launch of the interest rate cut cycle will strengthen the outlook for energy demand in 2025, becoming a long-term supporting factor for oil prices.

Uncertainties on the supply side continue to ferment. The lack of progress in peace talks for geopolitical conflicts has significantly reduced the possibility of Russian crude oil returning to the global market in the short term, forming expectations of a tight supply-demand balance. Technical analysis shows that U.S. crude oil has established a bottom around the $58 level. After successfully breaking through the short-term moving average convergence zone, the daily chart shows a bottom-up structure, with the MACD histogram approaching the zero axis and short-selling momentum weakening significantly. Market analysts believe that if oil prices firmly stand at the key $60 mark, it will open up upward space to $62, while the $58-$58.5 range will become the core support level.