Oil subdued at $45.00 weighed down by fears of global supply glut

WTI crude oil remained suppressed on Tuesday and is currently hovering around $45.00 mark, within striking distance of retesting a multi-week low level of $44.40 touched in the previous week. 

Renewed fears of a global supply glut have kept crude oil recovery from a two-month low level under check. On Monday, the black gold stalled a two days of tepid recovery and dropped around 1.5% as a failed military coup attempt in Turkey cooled-off supply disruption worries. 

The commodity came under renewed selling pressure on Tuesday and failed to benefit from overnight risk-on rally in the US equity markets. Moreover, a mildly stronger US Dollar also seems to weigh on commodity-linked commodities - like oil. 

Next in focus would be on a slew of global economic releases that would drive investor sentiment around riskier assets. Meanwhile, traders will also keep a close watch on Tuesday crude supply reports from API ahead of the official EIA report on Wednesday, which would provide fresh near-term impetus to crude oil prices. 

Technical levels to watch

Sustained weakness below $45.00 psychological mark is likely to get extended immediately towards 100-day SMA support near $44.15-44.00 region, below which a fresh leg of corrective move is likely to drag the commodity back towards $43.00 horizontal support. 

Meanwhile on the upside, recovery momentum above $45.45 immediate resistance could get extended towards $46.00 handle. Any further bullish traction above $46.00 handle now seems to be capped around $46.50-55 strong resistance. Only a sustained move back above $46.50 important resistance might negate the near-term bearish bias and open room for further near-term appreciating move for the commodity.