Crude Oil Futures: Upside seen limited

Open interest in Crude Oil futures shrunk by nearly 17K contracts on Thursday, reaching the third drop in a row according to flash data from CME Group. Volume, too, decreased by nearly 52K contracts, resuming the downside following the previous build.

WTI stays capped by $52.00/bbl in the near-term

Shrinking open interest and volume coupled with the failed attempt to surpass the $52.00 mark on Thursday leave further room for a correction lower in WTI in the short-term horizon, adding to the probability that the commodity could have carved a near-term top at the same time.