Crude oil falls by 0.5%, weighed down by weak Asian cues

Crude oil futures fell by Rs 15 to Rs 2,695 per barrel today as traders engaged in trimming positions amid a weakening trend in Asian trade.

In futures trading at the Multi Commodity Exchange, crude oil for delivery in September contract was trading down by Rs 15, or 0.55% at Rs 2,695 per barrel in business volume of 6,258 lots.

In a similar fashion, oil in far-month October delivery moved down by Rs 14, or 0.50%, to Rs 2,778 per barrel in 212 lots.

Analysts attributed fall in crude prices at futures trade to a weak trend in Asian trade where it slid to a fresh six and a half year low today, approaching the key $40 a barrel level after a surprise rise in US inventories added to concerns of a supply glut.

Meanwhile, West Texas Intermediate (WTI) crude for September delivery, which expires today, dipped 32 cents to $40.48 after falling sharply in New York to its lowest level since March 2009. Brent crude for October dropped 25 cents to $46.91 a barrel on the New York Mercantile Exchange.