CME Group’s flash data for crude oil futures markets noted open interest dropped for the second straight session on Wednesday, now by more than 3K contracts. In the same line, volume shrunk for the second session in a row, this time by nearly 31.5K contracts.

WTI RISKS A MOVE TO THE 200-DAY SMA

Wednesday’s positive price action was supported by short covering, as noted by shrinking open interest and volume. Against that, a move lower in WTI remains on the cards with the potential target at the 200-day SMA, today near $36.80 per barrel.