Crude Oil Futures: Downside looks limited near-term

Open interest in crude oil futures shrunk for the third consecutive day on Friday, this time by around 28.7K contracts according to preliminary figures from CME Group. Volume, instead, reversed three drops in a row and increased by more than 8K contracts.

WTI appears supported around $49.30

Prices of the WTI have resumed the downside following last week’s bullish attempt to the $52.00 mark per barrel. Declining open interest at the end of last week gives support to the idea that decent contention emerges at YTD lows around $49.30. This view is also reinforced by the current oversold levels measured by the RSI (27.70).

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