Crude oil futures firm up on Asian cues

Tuesday, Jan 5, 2016,11:18 IST By metrovaartha A A A

New Delhi | Crude oil futures prices rose by 0.31 per cent to Rs 2,571 per barrel Tuesday as speculators widened positions tracking a firm trend in Asia. At the Multi Commodity Exchange, crude oil for delivery in far-month February was trading Rs 8, or 0.31 per cent higher at Rs 2,571 per barrel, with a business turnover of 19 lots. The oil for January delivery also moved up by Rs 7 or 0.28 per cent, to Rs 2,472 per barrel with a business volume of 1,200 lots.

Analysts attributed the rise in crude oil futures to a rebound in Asian trade as a diplomatic row between Saudi Arabia and Iran deepened, but a global crude supply glut and economic weakness in China are keeping any increases in check. Tensions between the two major oil producers over Saudi Arabia’s execution of a prominent Shiite cleric have erupted into a full-blown diplomatic crisis after Riyadh and its Sunni Arab allies cut or reduced ties with Iran, sparking global concern.

Meanwhile, West Texas Intermediate (WTI) crude prices for February delivery rose 25 cents to USD 37.01 while Brent crude was trading 24 cents higher at USD 37.46 a barrel on the New York Mercantile Exchange.