Forex News

CME Group Data Shows Loss of Momentum in Crude Oil Futures Markets

Published by
Nonhlanhla P Dube
  • CME Group’s flash data shows a decline in open interest positions and volume in the crude oil futures markets, which suggests a loss of momentum in the market’s recovery.
  • The key initial barrier for bulls is at the $80.00 mark per barrel, which the market has yet to surpass.
  • Ongoing geopolitical tensions and the impact of the COVID-19 pandemic on global oil demand could result in further volatility in the crude oil futures markets in the coming months.

According to the latest data from CME Group, crude oil futures markets are experiencing a decline in momentum as traders reduce their open interest positions by around 22.1K contracts at the beginning of the week. The volume also followed suit and went down for the second straight session, this time by around 20.2K contracts. This development adds to the ongoing downtrend in crude oil futures markets.

The WTI, or West Texas Intermediate, has faced the next-up barrier of around $80.00. Although Monday’s uptick in prices of the WTI provided temporary relief, it came on the back of diminishing open interest and volume. This development has poured cold water over expectations of further gains in the very near term. On the upside, the key $80.00 mark per barrel emerges as a key initial barrier for bulls.

The crude oil futures market is an essential component of the global economy, with many countries, including South Africa, heavily dependent on oil imports to meet their energy needs. Therefore, any changes in the crude oil futures markets have a direct impact on the South African economy.

In conclusion, the latest data from CME Group suggests a loss of momentum in the recovery of crude oil futures markets. While the key $80.00 mark per barrel remains a significant initial barrier for bulls, ongoing geopolitical tensions and the impact of the COVID-19 pandemic on global oil demand could result in further volatility in the crude oil futures markets. South Africa, as a net oil importer, will be closely monitoring these developments and their potential impact on the economy.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube

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