Crude oil futures jumped by 1 per cent during late morning trade in the domestic market on Monday tracking a firm trend overseas as a softer dollar following Friday’s dismal US jobs data bolstered the appeal of the energy commodity as an alternative asset.
Softer greenback makes oil cheaper for those holding other currencies, thus lifting demand.
The dollar was languishing at the lowest levels in nearly a month after data showed that American employers added the fewest jobs since September 2010 in May 2016, pushing back bets of a US Federal Reserve interest rate hike atleast until September.At the MCX, Crude oil futures for June 2016 contract were trading at Rs. 3,286 per barrel, up by 1.01 per cent, after opening at Rs. 3,280, against the previous closing price of Rs. 3,253.
It touched the intra-day high of Rs. 3,295. (At 11:51 AM).
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