Crude oil futures plunge on low demand

Crude oil futures on Tuesday plummeted 10.89 per cent to Rs 1,579 per barrel as participants trimmed their positions on weak spot demand.

On the Multi Commodity Exchange, crude oil for May delivery fell by Rs 193, or 10.89 per cent, to Rs 1,579 per barrel with a business volume of 16,765 lots.

Crude oil for June delivery was quoting lower by Rs 195, or 9 per cent, at Rs 1,972 per barrel with an open interest of 1,306 lots.

Analysts said the fall in crude oil futures was mostly due to trimming of positions by participants amid low demand.

Last night, West Texas Intermediate (WTI) crude futures for May 2020 contract settled at an unprecedented USD (-)37.63 a barrel, after slipping into the negative zone on fears of fast-filling storage facilities globally and an unprecedented plunge in demand due to the novel coronavirus pandemic.

On Tuesday, WTI crude oil recovered 99.23 per cent to (-)USD 0.29 per barrel for May contract.

Meanwhile, Brent Crude futures for June was trading 11.61 per cent lower at USD 22.55 per barrel in New York. PTI