Oil drops to session low of $45.50 as oversupply worries resurface

After struggling to move back above $46.00 handle, WTI crude oil turned lower and has now dropped to session low to currently trade around mid-$45.00s.

Since early Asian session, the black gold traded with negative bias on news that a military coup in Turkey over the weekend has failed and that the Turkish ports were operating normally.

Oil prices are weighed down on renewed worries of a global supply glut after Friday's data from industry group Baker Hughes showed continuous rise in the number of rig counts in the US, with the latest rig counts rising to 357, the highest number since April. 

Moreover, demand from China also showed some signs of dampening demand for fuels and might continue to cap any sharp near-term appreciation for the commodity. 

Adding to the weak sentiment surrounding oil prices, data released from the US Commodity Futures Trading Commission (CFTC) on Friday showed speculators trimmed their net bullish bets on WTI oil futures during the week ended July 12. This was the third straight weekly drop in net bullish positions.

Technical levels to watch

From current levels, $45.00 psychological mark seems to provide some immediate support. Failure to hold this immediate support now seems drag it further towards testing 100-day SMA support near $44.00 round figure mark, with recent lows near $44.50 acting as intermediate support. 

On the flip side, strong momentum above $46.00 handle now seems to confront strong resistance near $46.50 area, above which the commodity seems to extend its bullish trajectory towards its next major resistance at 50-day SMA, currently near $48.00 region. $47.00 round figure mark could provide some interemdiate resistance on the upside.