Crude oil futures fall on weak Asian cues

NEW DELHI: Crude oil futures fell by Rs 18 to Rs 2,367 per barrel today as speculators trimmed their position amid a weak trend in the Asian markets.

Trading sentiment weakened, tracking a subdued trend in Asia where oil extended losses after another report showing a further increase in US stockpiles added to fears about a global glut, while dollar strengthened after the Federal Reserve hiked interest rates, analysts said.

The under-pressure commodity suffered fresh selling yesterday after the US Department of Energy showed that supplies rose 4.8 million barrels in the week ending December.

At the Multi Commodity Exchange, crude oil for delivery in December fell by Rs 18, or 0.75 per cent, to Rs 2,367 per barrel in 3,456 lots.

On similar lines, crude for delivery in January next year was trading lower by Rs 14, or 0.56 per cent, to Rs 2,474 per barrel in a business volume of 688 lots.

Globally, West Texas Intermediate (WTI) crude oil for January delivery was down six cents at USD 35.46 a barrel, while Brent crude for February, a new contract, was down 15 cents at USD 37.24 per barrel on the New York Mercantile Exchange.

Prices tumbled since December 4, when the OPEC oil exporters' group refused to put a limit on the amount it produces, despite a supply glut, anaemic demand and a slowing global economy.