Crude Oil Futures: Further decline looks shallow

Traders scaled back their open interest positions in crude oil futures markets by around 32.5K contracts on Monday, resuming the downside following Friday’s uptick. On the other hand, volume went up by more than 93K contracts following two daily drops in a row.

WTI: Solid support emerges around $36.00

The barrel of WTI dropped and tested the vicinity of the $38.00 mark at the beginning of the week, just to rebound afterwards. The negative performance in the commodity was amidst declining open interest, signalling that a deeper pullback looks somewhat unlikely for the time being. The next support of relevance in case the downside picks up pace is at the monthly lows in the $36.00 zone per barrel.