Oil retreats back to $47.00 handle ahead of Yellen speech

WTI crude oil retreated on Friday to trim some of its recovery gains posted in the prior session and is now seen extending its downslide to hit fresh session low, close to $47.00 round figure mark.

On Thursday, the black gold gained on reports that Iran oil minister, Bijan Zanganeh, will attend the informal OPEC meeting in September and revived hopes of a possible collective production cap agreement. However, comments from the Saudi energy minister, negating possibilities of a strong intervention in the market, attracted fresh selling pressure around the commodity. 

Market participants, however, remain focused on the Federal Reserve Chairwoman Janet Yellen's speech at Jackson Hole symposium for clues on the central bank's monetary policy outlook for 2016, which would determine the near-term direction for the greenback and eventually drive dollar-denominated commodities - like oil. 

Oil traders will also confront the release of Baker Hughes report on US oil rig counts preceded by US GDP print for the second quarter of 2016.

Technical levels to watch

A sustained weakness back below $47.00 mark would expose $46.50 support, below which the commodity seems to extend the downslide towards its next major support near $45.75 region. On the flip side, $47.50 level might continue to act as immediate resistance, which if cleared should assist the commodity to reclaim $48.00 handle and extend its upward trajectory further towards its next major resistance near $48.90-49.00 area.