Oil corrects from nearly two-month highs, turns negative at $48.00

After hitting a fresh 6-week high, WTI crude oil lost upside momentum and turned back lower to currently trade at session low with a cut of 0.5%, around $48.00/barrel mark. 

A renewed bid tone surrounding the greenback on Friday is seen weighing on dollar-denominated commodities - like oil, forcing oil traders to take some profits off the table following the commodity's strong rally from sub-$40.00 monthly low level. 

Nevertheless, the black gold is still set to post a third straight week of strong gains led on hopes of a fresh agreement on production freeze at an informal OPEC meeting next month. 

Next on tap would be the US rigs count from oil driller Baker Hughes, later during NY trading session. Last week, the driller reported rise in the US oil rig counts for seventh-straight week, taking the total number to the highest level since February 26. Any further rise would resurface worries of a global supply glut and could hinder the ongoing bullish momentum.

Technical levels to watch

On a sustained weakness below $48.00 mark, the corrective price-action is likely to get extended immediately towards $47.50 en-route its next major support near $45.50 region. On the upside, fresh buying interest above session high resistance near $48.75 now seems to open room for continuation of the upward trajectory beyond $50.00 mark, towards $50.54 (high June 22) and eventually towards $51.67 (2016 high touched on June 09).