Crude Oil Futures: Rally could take a breather

CME Group’s flash readings for crude oil futures markets noted traders scaled back their open interest positions by around 55.3K contracts on Tuesday, the largest single day drop since March 19 2021. On the other hand, volume went up by around 907.3K contracts, the second daily build in a row.

WTI: Immediate target emerges at $112.00

Prices of the barrel of WTI rose sharply on Tuesday and quickly left behind the key $100.00 mark. The strong upside was on the back of shrinking open interest, removing some strength from the likeliness of extra gains and opening the door to an impasse in the rally in the very near term at least. Further upside in crude oil prices now targets the round level at the $112.00 mark per barrel.