Crude oil futures gain over 1% on firm demand, ETEnergyworld

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<p>Crude oil prices saw a rise of over 1 per cent in futures trade on Friday. This increase was driven by strong spot demand and positive global market signals. </p> — Crude oil prices saw a rise of over 1 per cent in futures trade on Friday. This increase was driven by strong spot demand and positive global market signals.

Crude oil prices rose more than 1 per cent to ₹5,825 per barrel in futures trade on Friday as traders built up fresh positions tracking firm spot demand amid strong global cues.

On the Multi Commodity Exchange (MCX), crude oil for February delivery increased by ₹75, or 1.31 per cent, to ₹5,821 per barrel in a business turnover of 12,180 lots.

Similarly, the March contract traded higher by ₹88, or 1.53 per cent, at ₹5,825 per barrel in 560 lots.

Traders said the increase in crude oil prices was due to a rise in a steady demand outlook, which kept sentiment firm in the domestic markets.

In global markets, West Texas Intermediate (WTI) crude oil futures for March delivery were trading 1.17 per cent higher at $64.03 per barrel, while Brent crude rose 1.02 per cent to $68.24 per barrel in New York.

Crude oil prices on Friday edged higher to around $63.5 per barrel, though caution persists as uncertainty remains on multiple fronts, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.

Meanwhile, peace talks between Russia and Ukraine ended without a breakthrough, and US-Iran negotiations seem uncertain as Tehran reiterated that it has “no intention” of negotiating over its enriched uranium stockpiles, potentially a major sticking point.

Chainwala added that Saudi Arabia cut the official selling price of March Arab light crude to Asia, marking the fourth consecutive monthly cut, but the reduction was smaller than expected.

On Thursday, WTI crude prices slipped below $63 per barrel as concerns over near-term supply disruptions eased ahead of US-Iran talks in Oman, she said.