CME Group’s flash data for crude oil futures markets showed traders scale back their open interest positions by around 4.6K contracts on Wednesday, adding to the previous day’s pullback. In the same line, volume reversed two daily builds in a row and shrank by around 34.5K contracts.

WTI: Small correction in the offing?

Prices of the WTI printed new multi-month highs on Wednesday further north of the $120.00 mark. The move was accompanied by increasing open interest and volume and hints at the idea that a probable corrective downside lies ahead. The nearly overbought condition of the commodity also appears to reinforce that view for the time being.