Crude oil down on weak global cues

Speculators reduced their positions on weak cues

Crude oil futures prices today fell sharply by 1.77% to Rs 4,563 per barrel as speculators indulged in reducing their positions amid a weak trend in the Asian trade.

At the MCX, crude oil for delivery in July shed Rs 82, or 1.77%, to Rs 4,563 per barrel, having a business volume of 9,249 lots.

The August contract moved down by Rs 80, or 1.71%, to Rs 4,609 per barrel, in a turnover of 677 lots.

Marketmen said the fall in crude oil futures prices was mostly attributed to a weakening trend in Asian trade after an unexpected rise in US inventories, which climbed to the highest level in 22 years.

Meanwhile, crude oil for delivery in July down 89 cents to trade at almost 8-month low of $80.56 a barrel, on the New York Mercantile Exchange.