Crude Oil Futures: Probable correction lower

Considering flash readings from CME Group for crude oil futures, open interest shrank for the fourth session in a row on Thursday, now by around 4.5K contracts. Volume, instead, extended the uptrend for another session and went up by 185.1K contracts, the largest single-day increase so far this month.

WTI now looks to $72.88

Prices of the West Texas Intermediate extended the rally beyond the key $70.00 mark per barrel on Thursday. The move beyond this key barrier, however, was on the back of shrinking open interest, opening the door to a probable corrective move in the very near term. This view is reinforced further by the current overbought conditions of the commodity, as per the daily RSI. The continuation of the rally now targets the May 2018 high at $72.88 per barrel.