WTI fails to hold ground at yearly highs, tumbles in sell-off with little rebound

• Crude fumbles from January's highpoint, and bulls are struggling to develop steady momentum.
• American oversupply continues to rattle oil traders, struggling to push up prices amidst the steady stream of US crude.

Crude oil took a hard tumble on Tuesday, and the commodity has been unable to stage a comeback, with WTI hanging around near lows at 64.65 heading into the European market session.

Risk aversion plowed into the broader markets on Tuesday and the subsequent dump in crude prices continued unabated following API Crude Stocks that showed a 5.3 million barrel pileup in American crude stocks as the US continues to oversupply global markets and constrain prices despite the OPEC's continuous efforts to plug the hole.

Saudi tempers are flaring following the launching of missiles alleged to be controlled by Hamas supporters and Iran, but even Middle East skirmishes couldn't give oil a lift and crude continues to drag along the bottom.

WTI Levels to watch

Immediate support is yesterday's low at 64.50, and a continuation by the bulls will see further challenges from the 64.00 major level that acted as key support last week, while bulls will have to face last week's swing high at 65.40 and this week's high at 66.50.