Oil plunges to a fresh 11- week low, dips below $43.50

WTI crude oil extended its slide further below $44.00 handle and has now dropped to a fresh 11-week low level to currently trade around $43.50 region.

The commodity is building on to its last week's decline of around 4% as renewed concerns over a global supply glut, led by continuous rise in US oil rig counts for a fourth straight week, is seen weighing on the black gold. 

Adding to this, a fresh bout of US Dollar strength, on the back of reviving hopes of an imminent Fed rate-hike, is also denting demand for dollar-denominated commodities - like oil. Hence, oil traders will keep a close eye on this week's FOMC monetary policy decision, which would determine the near-term direction for the greenback and eventually drive riskier assets - like commodities, including oil.

From technical perspective, the commodity has confirmed a breakdown below multi-week lows support near $44.50-40 region and hence, remains vulnerable to continue sliding lower in the near-term.

Technical levels to watch

From current levels, the commodity seems to find immediate support around $43.00 handle (May monthly lows) before drifting towards a previous strong resistance turned important support near $42.30-20 region.

On the flip side, any recovery attempt back above $44.00 handle now seems to confront a strong resistance at an important support break-point near $44.40-50 region. Additional recovery above $44.50 strong resistance now seems to be capped around $45.00 psychological mark, which if conquered might negate the near-term bearish outlook.