Crude oil surged 1.06 per cent to Rs 3,432 per barrel in futures market today as speculators engaged in creating speculative positions, taking positive cues from Asian markets.
At Multi Commodity Exchange, crude oil for delivery in June contract was trading higher by Rs 36 or 1.06 per cent to Rs 3,432 per barrel in a business turnover of 2,608 lots.
Likewise, the oil for delivery in July gained Rs 33 or 0.96 per cent to Rs 3,484 per barrel in 157 lots.
Analysts said speculative positions created by traders after crude prices extended gains to multi-month highs in Asia today following another drop in the US supplies and the prospect of further disruptions to output from key producer in Nigeria, mainly influenced crude futures here.
The commodity has almost doubled since hitting near 13-year low at the start of the year as a global supply glut eased thanks chiefly to a weakening dollar, signs of a pick-up in the world economy and falling production from Nigeria and Canada.
Yesterday, the Department of Energy said the US commercial stocks fell much more than expected in the week to June 3, fanning talk that demand is improving in the world’s biggest oil consumer.
Meanwhile, West Texas Intermediate gained 32 cents or 0.62 per cent to USD 51.55, its highest since July, while global benchmark Brent advanced 22 cents or 0.42 per cent to USD 52.73 a barrel, its highest since October.