Crude Oil Futures: Probable correction lower near-term

CME Group’s preliminary prints for Crude Oil futures markets noted open interest shrunk by nearly 14.7K contracts on Wednesday following five daily builds in a row. On the other hand, volume went up for the third consecutive session, this time by around 233.6K contracts.

WTI looks to surpass the 200-day SMA at $40.30

Prices of the WTI managed to close above the key $40.00 mark per barrel on Wednesday. The uptick, however, was amidst shrinking open interest, indicative that a correction lower could be in the offing in the short-term horizon. Looking at the broader picture, crude oil prices need to clear the 200-day SMA around $40.30 to allow for the continuation of the recovery.