Oil recovers to $47.50, still deep in the red

After dropping back below $47.00 level, WTI crude oil is witnessing a minor pull-back but is still trading with a steep loss of nearly 5.5%, around mid-$47.00s.

As 52% of UK citizen voted to leave the European Union, investors rushed to buy traditional safe-haven currencies - like Yen and the US Dollar, denting appetite for dollar-denominated commodities, including oil.

Jittery global financial markets and persistent risk-aversion seems to keep investors away from riskier assets -like equities and commodities, and hence, could restrict any swift recovery in oil.

Important levels

Strong downside support near $46.00 level
Immediate upside resistance is around $48.50-$49.00 region