Oil attempting a recovery, moves back above $47.00 level

WTI crude oil is attempting a recovery on Tuesday with the per barrel price now moving back above $47.00 mark on slight improvement in global risk appetite as depicted by a bounce-back in Asian equity markets. 

On Monday, following a retest of sub-$46.00 multi-week low levels, the black gold managed to pull-back as renewed worries over global energy demand kept prices suppressed for second consecutive day. Adding to it, the so-called Brexit decision continued denting demand for riskier assets - like equities and commodities, including oil. Moreover, broad based US Dollar strength was also seen weighing on oil prices. 

Later during NY trading session, traders will focus on the Final US GDP print for the first quarter of 2016 along with the release of Conference Board's Consumer Confidence index for June, which would further drive investor sentiment going forward. Meanwhile, this week’s important data on weekly crude oil inventories by API on Tuesday and the official EIA report on Wednesday would be the key drivers for crude oil prices in the near-term.

Technical levels to watch

From current levels, the commodity needs to build on to its recovery gains above an immediate resistance around $47.30-35 area, above which the momentum could get extended immediately towards $48.00 mark. A follow through buying interest has the potential to further boost the commodity towards its next major resistance around $48.70-75 horizontal area. 

On the flip side, sustained weakness below $46.50, and a subsequent break below multi-week lows support near $45.80 region, is likely to extend the commodity's near-term corrective move towards $44.50 support with $45.00 psychological round figure mark acting as intermediate support.