Crude oil declines on weak global cues

Speculators reduced their positions which also dragged prices

Crude oil prices today fell 1.55% to Rs 4,587 per barrel, as speculators engaged in reducing their positions amid a weakening trend overseas on renewed concerns over the troubled euro zone.

At the MCX, crude oil for delivery in the July contract declined by Rs 72, or 1.55%, to Rs 4,587 per barrel in a turnover of 26,608 lots.

The July contract moved down by Rs 66, or 1.40%, to Rs 4,634 per barrel in 3,515 lots.

Analysts said trading sentiment remained weak at futures trade after crude oil prices fell in Asia on renewed concerns over the troubled euro zone and expectations that the Organization of the Petroleum Exporting Countries (OPEC) will raise its production quota also pressured prices.

Meanwhile, crude oil for delivery in July fell 83 cents to $81.87 a barrel, a level last seen in October on the New York Mercantile Exchange.