Crude oil climbed 2.58 per cent to Rs 2,542 per barrel at the futures market today as speculators raised their bets, taking positive cues from Asian markets.
At the Multi Commodity Exchange, crude oil for delivery in April rose Rs 64 or 2.58 per cent to Rs 2,542 per barrel in a business turnover of 2,761 lots.
Likewise, the oil for delivery in May traded higher by Rs 60 or 2.33 per cent to Rs 2,636 per barrel in 108 lots.
Analysts said speculators widened their positions on the back of a firm Asian trend, where oil prices bounced, with Brent climbing back above $40, as the market digested falling US output ahead of a producers’ meeting this month to discuss a proposed output freeze.
The US production fell for 10th time in 11 weeks, to 9.0 million barrels per day in the week through April 1, the lowest level since November 2014, according to data from the US Energy Information Administration.
Commercial crude stockpiles in the world’s top oil consumer also dropped, indicating stronger demand.
Meanwhile, West Texas Intermediate for May delivery gained 76 cents, or 2.04 per cent, to $38.02, while Brent crude for June delivery rose 62 cents, or 1.57 per cent, to $40.05 a barrel.
Prices had retreated on Thursday following a 5 per cent rally on Wednesday in reaction to the decline in US crude inventories.