Crude Oil Futures: A deeper drop seems not favoured

CME Group’s flash data for crude oil futures markets noted traders scaled back their open interest positions by around 2.6K contracts on Wednesday, reversing the previous daily build. On the other hand, volume increased for the second session in a row, now by 105.7K contracts.

WTI: Next on the downside emerges the $78.00 region

Prices of WTI retreated markedly on Wednesday, flirting with the interim 55-day SMA around the $84.00 zone. The sharp downtick was on the back of shrinking open interest and suggests that a sustained decline is not favoured for the time being. on the downside, the next support of note emerges at the August low of $77.64 (August 24).