Crude oil low as U.S. crude supplies drop in market

On Thursday Crude oil futures closed down in the domestic market after data showed an unexpected weekly drop in U.S. crude supplies & optimism surrounding the Organization of the Petroleum Exporting countries’ plan to limit output lifted prices in New York to their top level since mid-July of last year.

Numerous market spectators aren’t enthused by the deal, saying the group’s longstanding internal tensions will make it difficult for all members to be on board. Even if a deal is struck, it remains a question if the members would follow to the production quotas.

At the MCX, crude oil futures for October 2016 contract closed at Rs 3395 per barrel, downward by 2.22 %, after opening at Rs 3463, against a last close of Rs 3472. It touched the intra-day low of Rs 3385.

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