Crude Oil Futures: Downside looks shallow

Traders scaled back their open interest positions by just 876 contracts on Wednesday, resuming the downside following Tuesday’s build according to advanced readings from CME Group. In the same line, volume shrunk by around 90.7K contracts.

WTI met resistance near $28.00

Prices of the barrel of the American reference for the sweet light crude oil lost momentum in the vicinity of the $28.00 mark on Wednesday, coincident with the 55-day SMA. The move lower in WTI was in tandem with declining open interest and volume, however, removing tailwinds from a deeper pullback for the time being.