Crude oil futures were trading lower during the afternoon trade in the domestic market on Wednesday as investors and speculators remained on the sidelines in the energy commodity on oversupply concerns, although Middle East tensions and falling US inventories lent some support.
Further, an ongoing fuel glut keept oil prices under check despite the oil cartel and Russia pledge to cut almost 1.8 million barrels per day (bpd) of output.
The US Energy Information Administration (EIA) said on Tuesday that, world fuel production and consumption is roughly in balance, at almost 98 million bpd, although inventories remain bloated. At the MCX, crude oil futures for June 2017 contract is trading at Rs 3085 per barrel, down by 0.16 per cent, after opening at Rs 3100, against a previous close of Rs 3090. It touched the intra-day low of Rs 3084 (at 13:37 hours).