Crude
oil futures tanked 1 % during morning trade in the domestic market on Friday as
investors & speculators resorted to profit taking in the energy commodity
after stellar gains in the last session when the OPEC announced a cut in output
for the first time in eight years.
The
OPEC, a cartel which accounts for about 40 % of global crude supplies, at an
informal meet in Algiers on Wednesday, agreed in a preliminary deal to cut
output to a range of 32.5 million to 33 million barrels per day, easing worries
over a global supply glut, and spurring an over 4.4 % rally in domestic crude
futures on Thursday.
At the MCX, crude oil
futures for October 2016 contract is trading at Rs 3,172 per barrel, downward
by 1 %, after opening at Rs 3,190, against a previous close of Rs 3,204. It
touched the intra-day low of Rs 3,172.