Crude Oil Futures: Upside seen shallow

Open interest in Crude Oil futures markets decreased by around 17.2K contracts on Tuesday as per advanced prints from CME Group. In the same direction, volume went down by nearly 15.1K contracts, reaching the second drop in a row.

WTI expected to return to sub-$50.00 levels

Tuesday’s positive price action in WTI came on the back of declining open interest and volume, signalling the presence of short covering behind the current recovery. That said, prices are seen resuming the downside in the near-term, targeting the area below the key $50.00 mark per barrel once again.