WTI tumbles to lows, below $49.00 mark ahead of API report

Having stalled post-OPEC meeting recovery move, WTI crude oil resumed the downslide on Wednesday and has now slipped below $49.00/barrel mark.

Currently trading at three day lows near $48.80 region, rising Libyan production underscored investors' belief that the extended OPEC-led production cut deal would do little to curb heavy global supplies. 

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After last Thursday's plunge following the production cut deal agreement, a bout of short covering helped the black gold to move back above the key $50.00 psychological mark. Traders now seemed to re-establish short positions in anticipation of a build in the US crude stockpiles. 

Hence, today's key focus would be on the key API report, due later during the NY session ahead of the official EIA report on weekly US crude oil inventories, scheduled to be published on Thursday.

Technical levels to watch

Immediate support is pegged near $48.50-45 region, below which the commodity is likely to accelerate the slide back towards $48.00 ahead of $47.75 support. 

On the upside, any recovery move back above $49.00 handle now seems to confront resistance near $49.60 level, while $49.80 area now seems to have emerged as immediate strong hurdle.