Oil weaker below $47.00 mark on broadly stronger US Dollar

After registered its first weekly decline in the previous four, WTI crude oil remained on the defensive and extending the slide to currently trade below $47.00/barrel mark. 

On Friday, oil turned choppy after the Fed Chair Janet Yellen signaled increasing prospects of an eventual Fed rate-hike, sooner rather than later. Adding to this, hawkish comments from the Fed Vice Chairman Stanley Fischer fueled a broad based rally in the greenback and exerted de-facto selling pressure on dollar-denominated commodities - like oil. 

With the US Dollar extending its bullish momentum on Monday, the commodity shrugged-off Friday's report by Baker Hughes that showed US oil rig counts held steady after eight weeks of consecutive rises and continued drifting lower.

Meanwhile, any fresh rhetoric from OPEC members on the idea of a fresh production freeze agreement, at an informal meeting next month, would be the key drive for the oil markets in coming week. 

Technical levels to watch

On a sustained weakness back below $47.00 mark, the black gold seems to head towards testing $46.50 support, below which it seems to extend the downslide towards its next major support near $45.75 region. On the flip side, $47.50 level is likely to act as immediate resistance, which if cleared should assist the commodity to reclaim $48.00 handle and extend its upward trajectory further towards its next major resistance near $48.90-49.00 area.