WTI flat-lined below $48.00 mark, Baker Hughes report in focus

Having touched seven day highs on Friday, WTI crude oil reversed all of its early gains and has now retreated back below $48.00/barrel mark.

Against the backdrop of a sharp recovery witnessed since last Friday, led by renewed hopes over extension of the OPEC-led production cut deal, investors preferred to lock-in some profits and seemed to be one of the key factors for the commodity's retracement from higher levels. 

Wednesday's EIA report, showing a drop in the US domestic crude oil inventories by 5.2 million barrel, provided an additional boost to the commodity's recovery from yearly lows. And despite of today's pull-back, the black gold still seems poised to record strong gains in excess of 3% for the current trading week. 

Next in focus would be the US economic docket, which would influence demand for the US Dollar and eventually provide some fresh impetus to dollar-denominated commodities - like oil.

Today's major focus, however, would be on the Baker Hughes Rig Counts report, due later during the NY session, which if resurfaces concerns over global oversupply should prompt additional profit taking ahead of the key OPEC meeting on May 25.

   •  Goldman Sachs: A potential US border-adjusted tax could send WTI to $ 65

Technical levels to watch

Currently hovering around $47.90-85 region, immediate support is pegged near $47.55-60 area below which the commodity is likely to continue drifting below $47.00 mark towards testing its next support near $46.80-70 region. On the flip side, sustained momentum above $48.30 should lift oil prices to $48.70-75 intermediate hurdle ahead of $49.00 round figure mark.