Crude oil up by 1.9% on overseas cues

Crude oil futures surged by Rs 56 to Rs 3,042 per barrel today as speculators widened positions amid a firm trend overseas.

In futures trading at the Multi Commodity Exchange, crude oil for delivery in October shot up Rs 56, or 1.88%, to Rs 3,042 per barrel, with a business turnover of 6,030 lots.

The oil for delivery in November also climbed Rs 56, or 1.84%, to Rs 3,101 per barrel, in a turnover of 1,369 lots.

Analysts said the rise in crude oil futures was largely in tandem with a firming trend in Asian trade, ending four days of straight losses on news that Russia was prepared to talk about output cuts in a meeting with OPEC crude producers next week.

Oil prices had been tumbling since Monday on data showing that a global crude supply glut could persist well into next year.

A report on Thursday showing US commercial crude stockpiles increased last week further hurt prices as it pointed to softer demand in the world's top oil consumer.

US inventories jumped by 7.6 million barrels in the week ending October 9, nearly three times as much as experts had predicted.

Meanwhile, West Texas Intermediate crude prices for November delivery rose 1.10% to $46.89, while Brent crude for December, a new contract, gained 0.90% to $50.18 per barrel at the New York Mercantile Exchange.