Oil recovers from $45.00 handle, turns flat ahead of US data

After dropping to $45.00 handle during early European trading session, WTI crude oil has recovered and is currently hovering around Thursday's closing level at $45.50 level. 

The black gold on Thursday witnessed a tepid recovery after being slammed during the previous trading session on renewed worries of global supply glut as the recent data showed elevated level of crude oil inventories in the US. 

According to a report released by EIA global crude oil supplies in June grew by 600,000 barrels a day to 96 million barrels a day, which further raises question over the sustainability of the commodity's remarkable recovery from multi-year lows touched in Jan. 

However, further downside was limited on upbeat Chinese GDP data for the second quarter of 2016, which showed economy growing by 6.7% y-o-y and was in-line with consensus estimates of a 6.6% growth.

Oil traders now await for US economic releases that would determine the sentiment surrounding the US Dollar and eventually drive dollar-denominated commodities - like oil.

Technical levels to watch

On a sustained weakness below $45.00 mark, the commodity could immediately drop to test 100-day SMA support near $44.00 round figure mark, below which the commodity seems vulnerable to continue drifting lower in the near-term.

On the flip side, strong bullish momentum above $45.80-90 immediate resistance could boost the commodity back towards $46.50 strong resistance, which if conquered seems to assist further recovery towards 50-day SMA resistance near $48.00 region.