Crude oil down by 1.2% on weak Asian cues

Crude oil futures fell by 1.22% to Rs 3,885 per barrel today as speculators engaged in reducing their exposures amid a weakening trend in Asian trade where it tumbled to fresh five-year lows owing to weak demand.

At the Multi Commodity Exchange, crude oil for delivery in December month contracts was down by Rs 48, or 1.22%, to Rs 3,885 per barrel in 3,329 lots.

In a similar fashion, oil for January 2015 delivery contracts moved down by Rs 47, or 1.18%, to Rs 3,922 per barrel in 511 lots.

Marketmen said trading sentiment remained subdued after crude struck fresh five-year lows in Asia with analysts forecasting further falls owing to weak demand, a global supply glut and fewer production halts.
 
Meanwhile, West Texas Intermediate (WTI) crude for January delivery was down 40 cents at $62.65, while Brent curde for January fell 35 cents to $65.84 a barrel in on the New York Mercantile Exchange in mid-morning trade today.