WTI sold-off into resurgent USD demand, tests $ 50

Oil futures on NYMEX came under aggressive selling pressure amid notable US dollar demand across the board, as the European trading got underway.

More so, investors dumped risky assets such as oil, as risk-off sentiment extended into Europe, with the Euro Stoxx 50 futures seen -0.1% in early trades.

Additionally, fresh reports of a rebound in Libyan oil output re-enforced supply glut concerns and weighed negatively on the black gold. Meanwhile, reports of an increase in US drilling also cannot be ruled as one of the reasons behind the oil-price declines.

All eyes now remain on the US crude stockpiles data due to be published by the API later on Tuesday, which shape up the direction in the commodity in the coming days.

WTI technical levels        

A break above $ 50.84/51 (Mar 3 high/ key resistance) could yield a test of $ 51.35 (50-DMA) beyond which $ 52 (100-DMA) could be tested. While a breach of support at 200-DMA support of $ 49.55 would expose March 29 low of $ 48.38, below which downside opens up for a test of $ 47.01 (March lows).