Crude oil prices tumbled more than 1.3 per cent in the domestic market on Monday as traders were spooked by comments from an OPEC official who warned that the cartel which accounts for about 40 per cent of global crude oil supplies could potentially boost crude oil output to 33 mmbopd, the highest on record, once Iran returns on the scene after a lift-off of international sanctions.
The official said that the global oil market was in surplus by about 3 mmbopd led by a surge in output of Saudi Arabia and Iraq.
Iran plans to boost production by as much as 500,000 barrels per day within a week of lift-off of international sanctions as the Islamic nation reached a landmark accord with the West on its nuclear program.
At the MCX, Crude oil futures, for the August 2015 contract, is trading at Rs 2,743 per barrel, down by 1.33 per cent, after opening at Rs 2,765, against the previous close price of Rs 2,780. It touched an intraday low of Rs 2,740. (At 11:55 AM).