Crude oil prices fell sharply by 2.26% to Rs 3,754 per barrel in futures trade today as speculators reduced their holdings, triggered by a weakening trend, after US' rating downgrade.
At the Multi Commodity Exchange, crude oil for August delivery fell by Rs 89, or 2.26%, to Rs 3,754 per barrel, with a business volume of 28,023 lots. Similarly, the oil for September delivery lost Rs 89, or 2.24%, to Rs 3,800 per barrel, with a business turnover of 1,130 lots.
Market analysts attributed the fall in crude prices at futures trade to a weakening trend in global markets following Standard & Poor's decision last week to downgrade US rating, the world's largest oil consumer.
Meanwhile, New York's main contract crude for September delivery tumbled 2.68% to $84.55 a barrel in Asian region.