Oil recovers from 2-month lows, back above $45.00

After dropping to a fresh two-month low level, below $45.00 handle, WTI crude oil has managed to recover some lost ground and has now moved back into positive territory to currently trade around $45.10-15 band. 

Earlier on Monday, oil prices remained suppressed as stronger US Dollar, led by surprisingly strong Friday's headline NFP print, was seen weighing on dollar-denominated commodities. 

Adding to this, industry group Baker Hughes reported on Friday that the total number US rigs counts rose by 10 to 351, marking the fifth increase in the past six weeks, and resurfaced worries of global oversupply. 

The black gold, however, has managed to recover and move back above $45.00 as the greenback is seen retracing a bit from higher levels. 

Moving ahead, sentiment surrounding the US currency might continue to drive oil price as focus now shifts to economic data from world's largest consumer of commodities - China. This week's Chinese economic data includes - trade balance and GDP data on Wednesday and Friday respectively.

Technical levels to watch

On the upside, immediate resistance is pegged near a previous strong support break-point around $45.90-46.00 area, above which the momentum could lift the commodity back towards $46.60-70 horizontal resistance. On the flip side, weakness below $44.50 intermediate support has the potential to continue dragging the commodity towards its next major support near $43.00 handle.