According to preliminary data from CME Group for crude oil futures markets, traders reduced open interest positions by about 7.6K contracts at the start of the week, marking the second consecutive reduction. Following suit, volume fell by roughly 132.6K contracts.
Despite setting new highs above $74.00 per barrel, WTI prices began the week on a downward trend. These levels were last seen in October 2018. While Monday’s bearish outside day, combined with the proximity of overbought territory, suggests that a deeper retracement is unlikely for the time being, declining open interest and volume support the assumption that a deeper retracement is unlikely for the time being. In light of this, the $70.00 per barrel level now appears to be a viable option for oil bears.
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