Crude oil prices declined by ₹110 to ₹5,100 per barrel in the futures trade on Wednesday tracking weak global cues amid easing supply concerns.
On the Multi Commodity Exchange (MCX), crude oil futures for January delivery declined by ₹110, or 2.11 per cent, to ₹5,100 per barrel in a business turnover of 16,723 lots.
The February contract also depreciated by ₹94, or 1.8 per cent, to ₹5,125 per barrel in 5,076 lots.
Analysts said prices remained under pressure following geopolitical developments linked to Venezuela.
Mohammed Imran, Research Analyst, Mirae Asset ShareKhan, said the US intervention in Venezuela has brought the country’s crude operations under greater US influence, strengthening the long-term US energy security and reducing reliance on OPEC+.
“This in turn, will weaken the cartel’s pricing power in global crude markets,” he added.
On the global front, crude oil futures continued to decline. West Texas Intermediate (WTI) crude oil for February delivery was trading 0.91 per cent lower at $56.61 per barrel while brent crude for the March contract fell 0.59 per cent to $60.34 per barrel in New York.
“Crude Oil prices extended their decline on Wednesday, sliding to a three-week low after President Donald Trump said Venezuela’s interim authorities would release 30-50 million barrels of ‘high-quality, sanctioned oil’ to the US, easing concerns over potential supply disruptions,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
Meanwhile, the latest American Petroleum Institute (API) data numbers showed that US crude inventories fell by 2.8 million barrels last week, while gasoline and distillate stocks rose sharply, respectively, adding to pressure on prices, she said.
