Crude oil futures up 0.83% on overseas cues

Crude oil futures rose by 0.83 per cent to Rs 2,809 per barrel today as speculators raised their bets amid a firm trend overseas.
In futures trading at the Multi Commodity Exchange, crude oil for delivery in current month was trading higher by Rs 23, or 0.83 per cent at Rs 2,809 per barrel in 3,341 lots.
On similar lines, crude for delivery in September was trading higher by Rs 21, or 0.74 per cent at Rs 2,875 per barrel in a business turnover of 295 lots.
Analysts said rise in crude oil futures was largely in tandem with a firming trend in Asia, where it edged higher to near USD 42 a barrel today but analysts said the increase was unlikely to last as the commodity remains under pressure by a supply glut and a strong dollar.

Prices have been fluctuating since entering a bear market last week, falling more than 20 per cent and closing below USD 40 a barrel for the first time since April.
Initially recovering as US commercial crude inventory data showed an unexpected draw in gasoline, prices tumbled again later in the week after robust hiring numbers from the US government pushed the dollar higher.
A stronger greenback typically makes dollar-priced oil expensive for consumers using other currencies, denting demand.
Meanwhile, the US benchmark West Texas Intermediate crude prices for delivery in September was up nine cents to USD 41.89 a barrel and Brent crude for October rose five cents to USD 44.32 a barrel.