Crude oil extends gains on global cues, edges up by 0.26%

Traders enlarge positions, as commodity firms up in Asia, holding above $46 a barrel ahead of a report on US commercial crude inventories

Taking positive cues from overseas market, crude oil futures edged higher by 0.26 per cent to Rs 3,090 per barrel today as speculators enlarged positions.

At the Multi Commodity Exchange, crude oil for delivery in November was up by Rs 8 or 0.26 per cent at Rs 3,090 per barrel with a business turnover of 130 lots.

October crude gained Rs 7 or 0.23 per cent to Rs 3,037 per barrel in a turnover of 3,437 lots.

Analysts said the rise in crude oil futures was mostly in tune with a firming trend in Asian trade where it held above $46 a barrel ahead of a report on US commercial crude inventories, a closely watched indicator of demand in the world's top consumer.

A decline in US drilling activity has supported prices recently, fuelling hopes a fall in production would help ease the global crude supply glut.

Meanwhile, West Texas Intermediate crude prices for November rose two cents to $46.28 while Brent for November added 13 cents to $49.38 per barrel in late morning trade at the New York Mercantile Exchange.