Crude oil futures fall nearly 1% to Rs 7,915/barrel amid weak global cues

Crude oil prices fell nearly 1 per cent to Rs 7,915 per barrel in futures trade on Friday, tracking weak trends in the international markets.

On the Multi Commodity Exchange (MCX), crude futures for September delivery slipped Rs 49, or nearly 1 per cent, to Rs 7,915 per barrel.

The October contract also traded lower by Rs 56, or 0.71 per cent, to Rs 7,797 per barrel on the MCX.

Analysts said reports of a possible US role in Venezuela’s oil industry weighed on crude prices as market participants assessed the possibility of higher output from the South American producer.

Talks have been spearheaded by US Secretary of State Marco Rubio and Venezuela’s acting president, Delcy Rodriguez, reports said.

The developments come even as the US-Iran conflict has disrupted global energy supplies and lifted prices. The US Strategic Petroleum Reserve is also reportedly at a 40-year low, they added.

Globally, Brent oil futures for October delivery fell 1 per cent to trade at $88.95 per barrel on the Intercontinental Exchange.

The West Texas Intermediate (WTI) crude futures for the same month contract also slipped nearly 1 per cent to $83.02 per barrel on the New York Mercantile Exchange.

Brent crude is trading lower in the global markets as Washington has shifted from military to economic pressure, which has reduced fears of a wider war, Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities, said.

Meanwhile, Iran and Oman have reached a partial arrangement on sharing revenue from Hormuz traffic, even as Tehran says the full deal remains blocked, he said.

Banerjee said the easing in prices reflects a market moving away from extreme conditions, although the underlying supply remains tight.