Crude oil futures fall 8% amid weak Asian cues

New Delhi: Crude oil futures fell by Rs 8 to Rs 2,182 per barrel on 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 of India (MCX), crude oil for delivery in February shed Rs 8 or 0.37% 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% to Rs 2,084 per barrel in a business volume of 3,979 lots.
Analysts said trading sentiment remained weak following oil prices tumbling below $31 (nearly Rs 2,073.9) a barrel in Asian trade on Tuesday, 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.

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Globally, West Texas Intermediate (WTI) crude oil for February delivery slumped 45 cents or 1.43% to $30.96 (nearly Rs 2,071.22) a barrel while Brent crude tumbled 47 cents or 1.49% to $31.08 (nearly Rs 2,079.25) a barrel on the New York Mercantile Exchange.
The last time prices were so low for WTI was in December 2003 and in April 2004 for Brent. WTI touched a low of $29.66 (nearly Rs 1,984.25) in December 2003 and Brent in April 2004 hit $29.95 (nearly Rs 2,003.66).
Oil prices plummeted 10% last week as investors concern grew about the global supply glut and weakness in China’s market, which is the world’s biggest energy user.