Oil plunges to $47.50 amid uncertain global environment

Extending its slide further below $48.00 mark, WTI crude oil has now plunged to a 5-day low level to currently trade around mid-$47.00s level.

Global risk-off sentiment is forcing investors to move away from riskier assets - like equities and commodities, including oil. Adding to this, the prevalent uncertain environment is expected to dent global oil demand in the near-future that now seems to be weighing on investor sentiment. 

Moreover, global supply glut also seems to have resurfaced after last week's report by Baker Hughes that showed continuing rise in the number of US oil rig counts. 

Investors now turn their focus to API report on US crude supplies ahead of the official EIA report on weekly inventories that would provide near-term momentum for crude oil prices. Investors will also confront the release of FOMC meeting minutes and NFP data on Friday, which might now act as key fundamental triggers for the greenback and eventually affect crude oil prices.

Technical levels to watch

Sustained weakness below $47.50 now seems to turn the commodity vulnerable to continue with its slide back towards its recent multi-week lows support around $46.00 region, with intermediate support near $47.00 round figure mark. On the flip side, attempted recovery above $48.00 level now seems to confront resistance near $48.30, above which the commodity seems to head back towards $49.00 mark resistance.