Crude Oil futures: Recovery looks short-lived

Open interest and volume in Crude Oil futures markets decreased by nearly 41K contracts and almost 310K contracts, respectively, on Friday according to flash data from CME Group.

WTI appears capped around $52.00

Friday’s corrective upside in prices of the WTI was in tandem with shrinking open interest and volume, signalling the presence of short covering behind the move up. That said, recent tops just above the $52.00 mark per barrel should still act as a strong resistance, at least in the very near-term.