Crude Oil Futures: Rallies seen faltering near-term

Open interest in Crude Oil futures markets went down by nearly 6.2K contracts on Wednesday according to advanced data from CME Group. That was the first pullback after five consecutive builds. In the same direction, volume shrunk for the second day in a row, this time by around 3.7K contracts.

Rebound in WTI seen as short-lived

Prices of the WTI are extending the bounce off recent 2020 lows in sub-$50.00 levels backed by OPEC+ headlines and the generalized risk-on mood. However, declining open interest and volume warn against the sustainability of the upside, which is also reinforced by recent ‘oversold’ levels in prices.