Crude oil futures fall, weighed down by weak Asian cues

Friday, Feb 19, 2016,12:31 IST By metrovaartha A A A

New Delhi | Crude oil futures fell by Rs 35 to Rs 2,090 per barrel Friday after traders trimmed positions amid a weakening trend in Asian trade. In futures trading at the Multi Commodity Exchange, crude oil for delivery in Februry contracts was trading down by Rs 35 or 1.65 per cent at Rs 2,090 per barrel in business volume of 3,018 lots. Similarly, oil for March delivery contracts moved down by Rs 35, or 1.53 per cent, to Rs 2,260 per barrel in 1,434 lots.

The trading sentiment eased at futures trade after crude oil prices fell in Asian trade after a sharp rise in the US crude stockpiles and Saudi Arabia’s rejection of proposed output cuts shot down a rally by the battered commodity, analysts said.

The about-turn came as the US Energy Department reported a 2.1 million barrel increase in US commercial crude inventories, to the highest in more than eight decades, as well as sizeable increases in gasoline and other refined products.

Meanwhile, West Texas Intermediate (WTI) crude for March delivery fell 296 cents, or 0.94 per cent to USD 30.48, while Brent crude for April tumbled 30 cents, or 0.88 per cent, to USD 33.98 a barrel on the New York Mercantile Exchange. On Wednesday, WTI jumped more than seven percent while Brent added 5.6 per cent, after Saudi and Russia, the two biggest producers in the world, agreed to limit their pumping but only if others followed suit.