Crude oil futures rise Rs 61 a barrel on global cues

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Chatter from OPEC wasn't enough to offset a slowdown in the OECD economies in the fourth quarter, leaving crude oil prices mixed in early Tuesday trading. Saudi tried to verbally support oil prices last week by indicating that it is willing to see an undersupplied market. Technically, on the MCX, the current upside momentum for oil prices could initially continue towards resistance at Rs 4,090-4,120 zone looking possible.

Helping to limit gains are general concerns over rising USA production that may be offsetting the OPEC-led group's attempts to limit production, reduce the global supply glut and stabilize prices.

USA crude stockpiles have continued to build in recent weeks, but exports have grown - leaving something of a hole at the chief United States oil hub at Cushing, Oklahoma.

Oil prices, however, were mixed ahead of the opening bell in NY. Brent crude futures had dropped 36 cents, or 0.6 per cent, from their last close to $64.89 per barrel.

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The West Texas Intermediate for March delivery increased 0.34 USA dollar to settle at 61.68 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery added 0.51 dollar to close at 64.84 dollars a barrel on the London ICE Futures Exchange. A loose indicator of exploration and production, gains in North America could signal stronger future production and drive the price of oil lower. Slower domestic demand, along with growth in natural gas, oil, and oil product production will drive the transformation, the EIA said. Those fears triggered steep declines in US and global stock indices earlier this month.

"(This is although) Friday's price movements were likely position sensitive, amid U.S. dollar risk reduction and book squaring, ahead of tomorrow's oil contract expiration.

Year-over-year, all prices increased on average by 2.1 percent. Last week, the US government reported the price for consumer goods increased 2.1 percent a year ago and the price of goods imported into the United States increased 1 percent in January, after an increase of just 0.2 percent in December. Fuel prices jumped the most on the back of higher oil prices, though federal data show prices for non-fuel imports increased 0.4 percent in January, after posting a decline of 0.1 percent the previous month.