Crude Oil Futures: Scope for further downside

Open interest in crude oil futures markets reversed two consecutive daily drops and gained nearly 8.6K contracts on Monday in light of preliminary readings from CME Group. Volume followed suit and rose sharply by around 174.2K contracts, also following two pullbacks in a row.

WTI looks supported by the 200-day SMA near $37.50

Prices of the barrel of WTI met support near the $38.00 mark at the beginning of the week amidst rising open interest and volume. Against this, extra decline remains on the table although the 200-day SMA in the $37.50 region is expected to offer solid contention.