CME Group’s flash data for crude oil futures markets saw traders scaling back their open interest positions for the third straight session on Tuesday, this time by around 9.4K contracts. Volume, instead, resumed the upside and went up by more than 54K contracts.

WTI: Initial support comes around $88.50

Crude oil prices dropped sharply on Tuesday after hitting fresh 7-year tops during the previous session. The move, however, was in tandem with shrinking open interest, which diminishes the probability of a deeper retracement in the very near term. The increase in volume, in the meantime, could still drag prices of the WTI lower and retest the $88.50 region.