09.06 - Crude Oil Futures: Correction possibility
- by George Solotarov
Crude Oil futures noted open interest rose for the second session in a row at the beginning of the week, now by around 4.3K contracts. On the other hand, volume shrunk by nearly 75.1K contracts.
Prices of the West Texas Intermediate briefly surpassed the key $40.00 mark per barrel on Monday, just to close the session in the negative territory afterward. The negative performance was amidst rising open interest, which should point to a deeper correction in the very near-term. This view is also supported by prices navigating overbought conditions (as per the daily RSI).