Crude Oil Futures: The negative view remains unchanged

Open interest increased by around 14.2K contracts on Thursday, reaching the second build in a row as per advanced readings from CME Group. In the same direction, volume rose to a 3-day high by nearly 230K contracts.

WTI: A near-term rebound is not ruled out

Crude oil prices remain well under heavy pressure on Chinese growth concerns and oversupply fears. Thursday’s rebound in WTI from new YTD lows at $51.65 was not enough to close the day in the positive territory amidst increasing open interest and volume. That said, while the bearish view is expected to remain for the time being, a probable rebound in the short-term horizon should not be discarded, particularly in light of the current oversold levels.