WTI slides farther below $51.00 mark

WTI crude oil started the week on the back-foot and remained under some intense selling pressure through mid-European session.

Following a rally of as much as 20% during the third quarter, its biggest gain in 13-years, the black gold corrected on Monday and was being weighed down by a couple of bearish report, showing an increase in the US drilling and higher OPEC output. 

According to Friday's Baker Hughes report, US energy companies added oil rigs for the first week in seven, while a Reuters’ survey showed OPEC output rose by 50K bpd in September, resurfacing worries over a global supply glut. 

Meanwhile, persistent US Dollar buying interest was also seen driving flows away from dollar-denominated commodities and collaborated to Monday's sharp slide back below $51.00 round figure mark. 

It, however, remains to be seen if the current slide turns out to be the initial signs of near-term top formation or is just corrective in nature, especially after the recent rally to last week's over 5-month tops.

Technical levels to watch

A follow through selling pressure has the potential to continue dragging the commodity towards its next support near $50.30 level ahead of the key $50.00 psychological mark. 

Meanwhile, on the upside, any up-move back above $51.00 handle might now confront fresh supply near $51.40 level above which the commodity is likely to dart back towards the $52.00 handle.