Crude oil futures climb 2.96% on overseas cues

Softer dollar helps bolster prices as crude becomes cheaper for holders of weaker units, spurring demand

Crude oil futures surged 2.96 per cent to Rs 3,230 per barrel today as speculators enlarged positions, tracking a firming trend in Asian trade.

At the Multi Commodity Exchange, crude oil for delivery in current month gained Rs 93, or 2.96 per cent, to Rs 3,230 per barrel, with a business turnover of 9,279 lots.

The November contract moved up by Rs 92, or 2.88 per cent, to Rs 3,283 per barrel with a business volume of 572 lots.

Softening of the US currency helped bolster prices as the dollar-priced commodity becomes cheaper for holders of weaker units, spurring demand, marketmen said.

Meanwhile, West Texas Intermediate crude prices for November delivery was up 55 cents to $49.05, while Brent crude for November, rose 40 cents to $52.32 a barrel in late morning trade on the New York Mercantile Exchange.