Crude oil futures fall on weak Asian cues

Tuesday, Jan 12, 2016,11:18 IST By metrovaartha A A A

New Delhi | Crude oil futures fell by Rs 8 to Rs 2,182 per barrel Tuesday as speculators trimmed their positions amid weak cues from the Asian markets where it dipped to over 12-year lows. At the Multi Commodity Exchange, crude oil for delivery in February shed Rs 8 or 0.37 per cent to Rs 2,182 per barrel in 534 lots. On similar lines, crude for delivery in January was trading lower by Rs 5 or 0.24 per cent to Rs 2,084 per barrel in a business volume of 3,979 lots.

Analysts said trading sentiment remained weak after oil prices tumbled below USD 31 a barrel in Asian trade today, extending a sell-off that has sent the commodity to more than 12-year lows, hit by a global supply glut, a strong dollar and tepid demand. Globally, West Texas Intermediate (WTI) crude oil for February delivery slumped 45 cents or 1.43 per cent to USD 30.96 a barrel, while Brent tumbled 47 cents or 1.49 per cent to USD 31.08 a barrel on the New York Mercantile Exchange. The last time prices were so low for WTI was in December 2003 and April 2004 for Brent. WTI touched a low of USD 29.66 in December 2003 and Brent in April 2004 hit USD 29.95.

Prices plummeted 10 per cent last week as investors concern grew about the global supply glut and weakness in key market Chinese, which is the world’s biggest energy user.