Crude oil futures extend gains on Asian cues

Thursday, Feb 18, 2016,11:33 IST By metrovaartha A A A

New Delhi | Continuing its upward march, crude oil rose by another 1.14 per cent to Rs 2,138 per barrel in futures market Thursday as speculators indulged in widening their bets, taking positive cues from Asian markets.

At Multi Commodity Exchange, crude oil for delivery in February advanced Rs 24, or 1.14 per cent, to Rs 2,138 per barrel, in a business turnover of 2,114 lots. Likewise, the oil for delivery in March traded higher by Rs 26, or 1.04 per cent, to Rs 2,308 per barrel in 2,282 lots.

Analysts attributed persistent rise in crude prices to a firming trend in Asian trade today where it extended gains as traders welcomed comments from Iran’s oil minister praising a conditional agreement between Saudi Arabia and Russia to freeze output levels, fuelling hopes for stability in the commodity market.

On Tuesday Saudi Arabia and Russia, the two biggest producers in the world, agreed to limit their pumping but only if others followed suit.

Meanwhile, West Texas Intermediate (WTI) for February contract was 58 cents, or 1.89 per cent higher at USD 31.24 while Brent crude for April climbed 37 cents, or 1.07 per cent, to USD 34.87 a barrel. On Wednesday WTI jumped more than seven per cent while Brent added 5.6 per cent.