Crude oil futures were trading higher during afternoon trade in the domestic market on Tuesday as investors and speculators indulged in covering up their short positions in the energy commodity despite lingering worries over a persistent global supply glut.
The Organization of the Petroleum Exporting Countries (OPEC) and its partners has been trying to reduce a global glut with output cuts. Meanwhile, OPEC and some other oil exporting countries agreed in May to extend production cuts of 1.8 million barrels per day (bpd) until March 2018.
At the MCX, crude oil futures for July 2017 contract is trading at Rs 2,825 per barrel, up by 0.86 per cent, after opening at Rs 2807, against a previous close of Rs 2801. It touched the intra-day high of Rs 2830 (at 13:41 hours).