Crude Oil Futures: Extra weakness not favoured

Open interest in crude oil futures markets shrank by around 12.4K contracts at the beginning of the week, reversing the previous daily build, according to preliminary readings from CME Group. In the same line, volume remained choppy and dropped markedly by around 105.7K contracts.

WTI: Next on the upside comes the 200-day SMA

Prices of the barrel of the WTI started the week on the back foot amidst shrinking open interest and volume, which suggests the possibility that further decline is not favoured in the very near term. Further bullish attempts, in the meantime, are expected to target the 200-day SMA, today at $98.44 per barrel.