Crude Oil Futures: Correction lower in the offing

In light of advanced data from CME Group, open interest in crude oil futures markets shrunk for the third time in a row on Monday, this time by around 23.8K contracts. On the other hand, volume reversed three straight drops and rose by around 242.6K contracts.

WTI now looks to $40.00/bbl

Prices of the barrel of the WTI extended its rally beyond the key $30.00 mark on Monday, although amidst diminishing open interest. Against this, the continuation of the uptrend appears to be losing some traction and could spark a correction lower in the short-term horizon. On the upside, the next target is now at the $40.00 mark per barrel.