The Hindu Business Line : Crude oil futures trade lower on weak global cues

NEW DELHI: Crude oil prices on Monday fell in futures trading as traders off-loaded part of their holdings as the credit crisis deepened in Europe, adding to concern that global economy will slow and reduce demand for fuel.

The most-active October contract for crude oil fell 1.76 per cent to Rs 4,342 per barrel on the Multi Commodity Exchange, recording business volume of 3,101 lots. Similarly, November contract moved down 1.50 per cent to Rs 4,340 per barrel with trading volume of 234 lots.

Sentiment turned bearish after crude oil fell in the global markets as the credit crisis deepened in Europe, adding to concern that global economic growth will slow and reduce demand for fuel. Germany announced a new bailout package totalling 50 billion euros for Hypro Real Estate, the country's second-biggest commercial property lender.

Market analysts said fears a US-led financial crisis would slow down the global economic growth and will cut demand for the fuels, led to a fall in the crude prices at futures market here. Meanwhile, crude oil for November delivery fell $3, or 2.4 per c ent to $90 a barrel on the New York Mercantile Exchange. Futures have fallen 37 per cent from the record $147.27 reached on July 11. - PTI

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