Crude Oil Futures: Further upside could lose some traction

CME Group’s flash data for crude oil futures markets noted open interest extended the downtrend for yet another session at the beginning of the week, this time by around 23.1K contracts. On the flip side, volume went up by nearly 92K contracts following three daily pullbacks in a row.

WTI looks capped by $127.50

Prices of the barrel of WTI eased a tad from recent peaks past the $127.00 mark (March 7), although they remain well supported by the geopolitical landscape. Monday’s positive price action was in tandem with shrinking open interest, hinting at the idea that a probable corrective move could be in the offing aided by the current extreme overbought conditions of crude oil.