Crude Oil Futures: Room for further decline

CME Group’s flash data for crude oil futures markets noted open interest went down for the sixth session in a row on Friday, this time by nearly 16K contracts. On the other hand, volume increased by around 87.5K contracts, partially reversing the previous pullback.To get more news about fxview, you can visit official website.

WTI could slip back to sub-89.00 levels
Friday’s small downtick in prices of the WTI was on the back of shrinking open interest, allowing for the re-emergence of some weakness in the very near term. Against this, further correction could drag prices to, initially, the $88.80 region, where recent lows and a Fibo level (of the December-February rally) coincide.
One-month risk reversal (RR) of silver (XAG/USD) jumped the most since September 2021, on weekly basis, by the end of Friday’s North American session, per the options market data on Reuters.

That said, the RR print flashed 1.175 figure for the latest weekly count, the highest since the week ended on September 03, 2021.

Silver’s price performance also justifies the options market’s optimism as the bright metal rose during the last three consecutive weeks, before easing from a monthly high, down 0.71% intraday near $23.75 at the latest.

It’s worth noting that the latest risk-on mood weighs on the XAG/USD prices of late. However, cautious sentiment and softer USD keep metal buyers hopeful.