Mumbai: Futures of crude oil rose on Thursday on the back of the hopes for vaccines to combat coronavirus and also that the demand for oil would increase as economic activities gather pace.
Brent crude futures have hit the $50 per barrel mark. Currently, the February contract of Brent crude on the Intercontinental Exchange is trading at $50.29, higher by 2.93 per cent from its previous close.
Similarly, the January contract of WTI crude oil on the NYMEX is trading at $46.87, higher by 2.97 per cent from its previous close.
The surge comes a day after the crude futures traded on a subdued note on Wednesday after the Energy Information Administration reported an increase in crude inventory levels in the US.
As per EIA data, inventory of crude oil in the US increased by 15.2 million barrels against the analysts’ projection of a 1.4 million-barrel drop.
Further, the Organization of the Petroleum Exporting Countries (OPEC) and Russia have agreed to a marginal increase in oil production from January 2021 onwards.
The increase in crude oil prices is likely to further lift the retail prices of petrol and diesel in India in days ahead.
