Crude oil futures fell Rs 36 to Rs 2,722 per barrel today as speculators cut down their positions amid a weak trend in Asian trade.
At the Multi Commodity Exchange, crude for delivery in April dropped Rs 36 or 1.31 per cent to Rs 2,722 per barrel in 4,490 lots.
Oil for May delivery moved down Rs 33 or 1.16 per cent to Rs 2,803 per barrel in 82 lots.
Trading sentiment dampened at the futures trade after crude oil prices dipped slightly during the early hours of Asian trading today as fresh oversupply concerns spurred by an increase in operational US rigs bridled a recent rally, analysts said.
This follows a week of gains that lifted the US benchmark West Texas Intermediate (WTI) above $40 for the first time since December, buoyed by a sharp drop in the dollar, making oil more affordable, and revived optimism that producers would strike a deal to freeze output.
Meanwhile, West Texas Intermediate (WTI) crude for April fell 43 cents (1.09 per cent) to $39.01, while Brent crude for May eased 16 cents to $41.04 per barrel on the New York Mercantile Exchange.