Crude Oil Futures: Scope for a potential correction

CME Group’s flash data for crude oil futures markets noted traders scaled back their open interest positions by nearly 13K contracts on Monday, reversing at the same time four consecutive daily builds. On the other hand, volume resumed the upside and went up by almost 63K contracts.

WTI now targets $74.00/bbl

Monday’s uptick in prices of the WTI was amidst shrinking open interest, indicative that the ongoing recovery could face some headwinds and trigger a corrective move in the very near term. Looking at the broader picture, WTI has now shifted its focus to the late July peaks beyond the $74.00 mark per barrel.