Crude Oil Futures: Downside could take a breather

Traders scaled back their open interest positions by around 11.4K contracts on Tuesday, according to flash prints for crude oil futures markets from CME Group. Volume, instead, rose by around 69.5K contracts, partially reversing the previous sharp drop.

WTI does not rule out a drop below $20.00/bbl

Prices of the WTI remain under heavy downside pressure despite the recent OPEC+ deal. Tuesday’s pullback in prices was amidst shrinking open interest, which could limit the decline in the short-term horizon, although a move below the $20.00 mark per barrel should not be ruled out.