Crude oil futures fell 1.54 per cent to Rs 3,189 per barrel today, in line with a weak trend in Asian trade, as speculators indulged in trimming positions.
Crude oil for delivery in September was trading lower by Rs 50 or 1.54 per cent at Rs 3,189 per barrel with a business volume of 4,880 lots at Multi Commodity Exchange (MCX).
Also, oil prices for delivery in October fell by Rs 48 or 1.46 per cent at Rs 3,247 per barrel with a business volume of 187 lots.
Analysts said fall in crude oil futures is mostly in tune with a weak trend in Asian trade after industry data showing an increase in US crude stocks added to oversupply worries and traders took advantage of a recent rally to book profits.
Prices had closed higher Tuesday on news that Iran was willing to join calls by OPEC and Russia for production curbs after scuttling previous efforts to reach a deal in April.
But the gains were reversed in Asian trade after data from the American Petroleum Institute (API) overnight showed the US crude inventories rose by 4.5 million barrels in the week ending August 19, after falling by one million barrels a week earlier.
Rising stocks indicate weaker demand in the world’s top oil consuming nation and add to worries about a global crude supply glut.
Meanwhile, West Texas Intermediate for October was down 73 cents or 1.52 per cent to trade at $47.37 while global benchmark Brent for October dropped 61 cents or 1.22 per cent to $49.35 per barrel.