At the Multi Commodity Exchange, crude oil for delivery in February month contract was trading sharply lower by Rs 70, or 3.41 per cent to Rs 1,983 per barrel with a business volume of 7,836 lots.
On similar lines, crude for delivery in far-month March also dropped by Rs 68, or 3.17 per cent, to Rs 2,077 per barrel in 238 lots.
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Analysts said trading sentiment remained weak at futures trade here after US crude tumbled below $28 a barrel in Asian trade after the International Energy Agency (IEA) warned that the oil market could "drown in oversupply"
Globally, West Texas Intermediate (WTI) crude oil struck a low of $27.92 a barrel before recovering to trade at USD 28.15, down 31 cents, or 1.09 per cent, while Brent crude was 13 cent lower at $28.63 per barrel on the New York Mercantile Exchange.