Crude Oil Futures: Further downside still on the cards

CME Group’s flash prints for crude oil futures markets noted traders increased their open interest positions for the sixth session in a row on Friday, now by more than 6K contracts. Volume, instead, extended the downtrend and shrunk by almost 42K contracts.

WTI could break below $40.00/bbl

Prices of the WTI remain under pressure so far and could grind lower to the sub-$40.00 area per barrel following Friday’s negative price action amidst rising open interest. That said, the 55-day SMA at $39.50 emerges as the next support of note.