Oil turns sharply lower, back below $53.00 mark

Having posted a session high beyond mid-$53.00s, WTI crude oil turned sharply lower and reversed nearly $1 from daily peak amid fading hopes over an end to global oil glut. 

Currently trading around $52.80-85 region, the black gold came under some selling pressure as market digested recent agreement and turned skeptic over the implementation and adherence to the recent oil production cut agreement between OPEC and non-OPEC producers. Adding to this, a fresh bout of greenback strength, as meausred by the overall US Dollar Index, is also seen weighing on dollar-denominated commodities - like oil, and is also contributing to the commodity's latest leg of downslide. 

Moreover, with the Christmas holiday approaching, thin market liquidity conditions further aggravated the selling pressure. Later during the week, weekly US crude stockpiles report - API on Tuesday and the official EIA report on Wednesday, would provide fresh impetus for oil prices ahead of the final US GDP print on Thursday.

Technical levels to watch

Immediate support on the downside is pegged at $52.40 level, the slide could get extended even below $52.00 handle, towards $51.85 support area. On the upside, momentum above $53.00 round figure mark might continue to confront resistance near $53.40-50 region, which if cleared decisively should boost the commodity back towards $54.00 handle, en-route yearly high resistance near $54.50 region.