Crude Oil Futures: Upside still looks limited

Open interest in crude oil futures markets shrunk for the second session in a row on Tuesday, this time by almost 20K contracts according to flash data from CME Group. In the same line, volume resumed the downside and dropped sharply by around 213.5K contracts.

WTI now looks to the $40.00 mark

Tuesday’s drop to the mid-$40.00s and the subsequent rebound were accompanied by diminishing open interest and volume, tempering further bullish attempts and pointing to a deeper pullback in the near-term. That said, the $40.00 mark per barrel remains as the next magnet for WTI sellers.