Crude oil up by 1.5% on overseas cues

Speculators widened positions amid a firm trend overseas on geopolitical tensions sparked by the Paris attacks

Crude oil futures surged by Rs 40 to Rs 2,729 per barrel today as speculators widened positions amid a firm trend overseas on geopolitical tensions sparked by the deadly terror attacks in Paris.

In futures trading at the Multi Commodity Exchange, crude oil for delivery in November shot up Rs 40, or 1.49%, to Rs 2,729 per barrel, with a business turnover of 3,425 lots.

The oil for delivery in December also climbed Rs 35, or 1.25%, to Rs 2,836 per barrel, in a turnover of 492 lots.

The rise in crude oil futures was largely in tandem with a firming trend in Asian trade where it climbed today on geopolitical tensions sparked by the deadly terror attacks in Paris but analysts said a global crude supply glut is likely to restrict any gains.

French warplanes pounded the Islamic State group's de facto capital in Syria on Sunday in retaliation for the carnage in the French capital claimed by the jihadists, sparking fears of escalating tensions in the oil-producing but politically volatile Middle East.

Meanwhile, West Texas Intermediate crude prices for December delivery rose 27 cents to $41.01, while Brent crude for January, a new contract, was trading 50 cents higher at $44.97 per barrel at the New York Mercantile Exchange.