Crude Oil Futures: Recovery appears unconvincing
Considering advanced prints from CME Group for crude oil futures markets, traders scaled back their open interest positions by around 1.7K contracts on Thursday, recording at the same time the fourth daily drop in a row. Volume followed suit and added to the previous pullback, this time shrinking by around 5.6K contracts.
WTI remains capped by the 200-day SMA
Thursday’s decent uptick in prices of the WTI was fuelled by short covering, as noted by declining open interest and volume. Against that, further upside looks not favoured in the very near term and another test of recent lows near $87.70 (August 16) should not be ruled out.