Crude Oil Futures: Scope for further retracement

CME Group’s preliminary readings for Crude Oil futures noted open interest rose for the second session in a row at the beginning of the week, now by around 4.3K contracts. On the other hand, volume shrunk by nearly 75.1K contracts.

WTI remains focused on $40.00

Prices of the West Texas Intermediate briefly surpassed the key $40.00 mark per barrel on Monday, just to close the session in the negative territory afterwards. The negative performance was amidst rising open interest, which should point to a deeper correction in the very near-term. This view is also supported by prices navigating overbought conditions (as per the daily RSI).