Oil slammed to $43.00 neighborhood

Having faced rejection above $44.00 mark on Thursday, WTI crude oil resumed its near-term weakening trend and has now dropped to a fresh two-week low.

Currently trading within striking distance of $43.00 handle, the black gold came under fresh selling pressure as a broadly stronger greenback, as measured by the US Dollar Index, is weighing on dollar-denominated commodities, including oil.

Adding to this, news of an increase in oil exports from Libya and Nigeria, and a sharp rise in Iran's crude oil exports during August to pre-sanctions levels, renewed worries of global supply glut and is exerting selling pressure around the commodity. 

Later during US trading session, focus would be on Baker Hughes report on US oil rig counts, which would provide fresh impetus for oil traders. In the meantime, US economic releases - CPI print and consumer sentiment index, would have influence on the greenback and eventually drive oil prices. 

Technical levels to watch

Below $43.00 mark, the commodity is likely to find immediate support near $42.75 level, which if broken is likely to trigger a fresh leg of weakness that is likely to drag the pair towards its next major support near $42.00-41.90 area.

On the flip side, $43.40-50 zone now seems to act as immediate resistance. Even if the commodity manages to clear this immediate hurdle, further recovery might now to be capped at $44.00 round figure mark.