Crude Oil Futures: Scope for extra pullbacks

Open interest in crude oil futures markets shrank for the third session in a row on Thursday, now by around 6.7K contracts considering preliminary readings from CME Group. Volume followed suit and went down by around 101.8K contracts, adding to the previous day’s pullback.

WTI looks contained around $70.00

Prices of the WTI dropped to levels close to the $70.00 mark per barrel but finally managed to close the Thursday’s session with decent gains. The move, however, was supported by short covering, as noted by shrinking open interest and volume. That said, while further downside should not be ruled out yet, losses are seen limited by the $70.00 area for the time being.