Crude oil futures tumble on weak global cues

NEW DELHI: Crude oil futures plunged Rs 97 to Rs 2,961 per barrel today as speculators engaged in reducing bets amid a weakening trend in Asian trade.

At Multi Commodity Exchange, crude for delivery in September dived Rs 97, or 3.17 per cent, to Rs 2,961 per barrel in 3,013 lots.

Similarly, oil for October delivery was trading sharply lower by Rs 98, or 3.14 per cent, to Rs 3,023 per barrel in 170 lots.

The trading sentiments remained distinctly weak after crude oil prices extended losses in Asia today on weak US and Chinese manufacturing data, while expectations of a bearish US stockpiles report also weighed on the prices, analysts said.

Meanwhile, West Texas Intermediate (WTI) crude for October fell $1.14 to $44.27 while Brent crude for October sank 91 cents to $48.65 per barrel in late-morning trade on the New York Mercantile Exchange.

Meanwhile, WTI sank $3.79 and Brent lost $4.59 yesterday after China and the United States, the world's top two crude consumers, posted weak factory activity data.

Beijing's official Purchasing Managers index (PMI) for the manufacturing sector slumped to a three-year low of 49.7 in August from 50.0 in July. A reading below 50 indicates contraction.

The US Institute for Supply Management PMI fell to 51.1, the lowest level so far this year, from 52.7 in July.