Oil slides further, heading back towards $46.00 level

Following a sharp slide on Tuesday, WTI crude oil is extending its weakness for third straight day and has now moved within striking distance of recent multi-week lows to currently trade around $46.35-40 band.

On Tuesday, the black gold tumbled as investors remained worried that the historic Brexit referendum might lead to a global economic slowdown and dent oil demand. The commodity failed to get respite from supply disruption worries after another militant attack on Nigeria's oil infrastructure. 

Adding to this, global risk-aversion triggered a sharp rally for the greenback and was weighing on dollar-denominated commodities - like oil. Moreover, renewed global supply glut worries, after the recent data showing rise in US oil rig counts, is further contributing to the ongoing downslide in the commodity.

Moving ahead, oil traders now await for the release of API report on US crude supplies ahead of FOMC meeting minutes that is likely to trigger some volatile moves in the market.

Technical levels to watch

On the immediate downside, $46.00 area remains immediate support to closely watch, below which the commodity seems vulnerable to continue drifting lower, possibly even below $45.00 handle, towards $44.50 support area. Meanwhile on the upside, recovery momentum above $47.00 round figure mark now seems to be capped by a strong resistance near $47.35-40 area.