Brent crude oil fell below $58 a barrel on Tuesday on signs of growing oversupply as Iranian officials visited Beijing to seek more oil sales after a framework nuclear deal that could lead to the lifting of sanctions. China is Iran's largest trade partner and has bought roughly half of its crude exports since 2012, when sanctions against the Islamic Republic were tightened. Oil markets were also pressured by a Goldman Sachs report saying prices needed to remain low for months to slow U.S. oil output growth.
Crude oil rose 1.11 per cent to Rs 2,543 per barrel in futures market on Thursday as speculators engaged in creating speculative positions, taking positive cues from Asian markets.
At Multi Commodity Exchange of India, crude oil for delivery in April month contract was trading higher by Rs 18, or 1.11 per cent, to Rs 2,543 per barrel, in a business turnover of 12,701 lots.
Likewise, the oil for delivery in far-month May gained Rs 27 or 1.03 per cent, to Rs 2,638 per barrel in 632 lots.
Analysts said speculative positions created by traders after crude prices extended gains in Asia following a sizeable drop in US stockpiles, the first decline in seven weeks, indicating stronger demand in the world’s top oil consumer.
Official data showed US commercial crude inventories fell 4.9 million barrels in the week ending April 1, after rising by 2.3 million barrels the week before.
The figures helped crude build on already healthy gains that came on the back of comments from Kuwait that this month’s crucial producers’ meeting could see an agreement to limit output.
Meanwhile, West Texas Intermediate for May delivery gained 39 cents or 1.03 per cent to $38.11 while global benchmark Brent for June advanced 29 cents, or 0.73 per cent, to $40.13 a barrel.
Prices closed more than five per cent higher on Wednesday.