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Crude oil futures fell Rs 51 to Rs 3,029 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 prices tumbled again due to pick-up in drilling activity and a strong dollar as speculation swirled that the Federal Reserve could hike interest rates as soon as this month, analysts said.
Crude oil had plunged on Friday, wiping out the previous day’s rally as analysts said a sharp fall in US inventories last week was likely a one-off caused by import cutbacks as Hurricane Hermine plowed through the Gulf of Mexico.
Remarks from two top Fed officials Friday backing a lift in borrowing costs also dragged on the market as the dollar rallied, making crude more expensive for anyone holding weaker units.
At the Multi Commodity Exchange, crude oil for delivery in September fell Rs 51 or 1.66 per cent to Rs 3,029 per barrel in 2,882 lots.
On similar lines, crude for delivery in October was trading lower by Rs 50 or 1.60 per cent to Rs 3,084 per barrel in a business volume of of 214 lots.
Globally, West Texas Intermediate (WTI) crude oil fell 79 cents to $45.09 a barrel, while Brent crude tumbled 76 cents to $47.25 per barrel on the New York Mercantile Exchange. Both contracts had collapsed almost four per cent on Friday.
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