Crude Oil Futures: Rebound likely near term
|Open interest in crude oil futures markets shrank by just 736 contracts on Thursday, partially reversing the previous daily build according to advanced prints from CME Group. Volume followed suit and dropped markedly by around 206.6K contracts.
WTI faces the next hurdle at the 200-day SMA
Prices of the WTI dropped to 6-month lows below the $90.00 mark per barrel on Thursday. The strong pullback was accompanied by diminishing open interest and volume, which initially rules out a deeper decline from current levels and instead allows a potential bounce in the very near term. An initial recovery is expected to target the 200-day SMA, today at $95.21.
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