February and March Contracts Decline in Futures Trade
New Delhi, February 17: Crude oil prices declined by nearly 1 per cent in futures trading on Tuesday, weighed down by weak demand in the physical market and mixed trends in overseas benchmarks.On the Multi Commodity Exchange, crude oil for February delivery fell by Rs 57, or 0.98 per cent, to Rs 5,734 per barrel. The contract recorded a trading turnover of 6,851 lots.
The March contract also moved lower, easing by Rs 47, or 0.81 per cent, to Rs 5,752 per barrel, with a trading volume of 10,277 lots.
Subdued Physical Demand Impacts Sentiment
The decline in domestic crude oil futures was attributed to muted demand from spot markets. Traders remained cautious as mixed global price movements limited fresh buying interest.The softer physical demand environment continued to exert pressure on investor sentiment during the session, leading to a pullback in both near and next month contracts.
Global Oil Benchmarks Show Divergence
In international markets, benchmark crude prices showed mixed performance.West Texas Intermediate crude oil for March delivery rose by 0.54 per cent to USD 63.24 per barrel. Meanwhile, Brent crude declined by 0.82 per cent to USD 68.10 per barrel in New York trading.
The contrasting movement in global crude benchmarks contributed to cautious positioning in the domestic futures market, keeping prices under pressure throughout the day.
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