Crude Oil Futures: Room for further correction near term

CME Group’s flash data for crude oil futures markets saw open interest rise by around 4.2K contracts at the beginning of the week, extending at the same time the uptrend in place since May 25. Volume, in the same direction, increased by around 1.1K contracts, partially offsetting the previous day’s drop.

WTI: Underlying tone remains positive

Prices of the WTI clinched new tops near the $121.00 mark on Monday, although it closed the session slightly in the negative territory. The downtick, however, was in tandem with rising open interest and volume, opening the door to further retracement in the very near term. The extension and duration of the corrective downside, however, remains to be seen in the current context of tight supply conditions and rising demand.