Oil back below $45.00, weighed down by stronger USD

WTI crude oil pulled-back further on Monday and is now approaching the lower end of daily trading range to currently trade back below $45.00 handle.

Fading hopes of a production freeze agreement has been the key factor weighing on the black gold, despite of the official EIA report showing a significant drop in US crude oil inventories.

Moreover, broad based greenback strength, as measured by the overall US Dollar Index, amid reviving hopes of an eventual Fed rate-hike prospects is also denting demand for dollar-denominated commodities - including oil. 

Today's speech from FOMC member Lael Brainard would provide fresh clues over the Federal Reserve's monetary policy outlook and hence, would be looked upon for fresh impetus for oil price movement going forward.

Technical levels to watch

On a sustained weakness below session low support near $44.80 level, the commodity is likely to attract fresh selling pressure and continue drifting lower towards testing its next support near $44.20-$44.00 region. Meanwhile on the upside, any recovery attempts above $45.10 level might now confront strong resistance near $44.50 region and only a decisive move above this strong resistance would negate any bearish bias.