Crude Oil Futures: Further upside lacks conviction

CME Group’s flash data for Crude Oil futures markets noted open interest shrunk by nearly 4.1K contracts on Tuesday, clinching the fourth consecutive daily drop. Volume, instead, went up for the second straight session, now by around 44.2K contracts.

WTI now looks to $42.00

Prices of the barrel of WTI briefly tested the vicinity of the $42.00 level on Tuesday. The move up, however, was in tandem with diminishing open interest, supporting the idea that short covering is fuelling the upside. That said, a move to $42.00 and potentially above is not ruled out in the very near-term horizon ahead of a probable correction lower.