Crude Oil Futures: A deeper retracement is not favoured

CME Group’s advanced readings noted traders trimmed their open interest positions by around 3.2K contracts on Tuesday, partially reversing the previous build. On the other hand, volume almost doubled from the previous session, rising by nearly 742K contracts.

WTI met support near $36.00

The sharp sell-off in crude oil prices appears to have met contention in the $36.00 neighbourhood so far on Tuesday. Further downside, however, looks unlikely amidst shrinking open interest and the extreme oversold condition in prices of the WTI.