Crude oil futures eased by Rs 7 to Rs 3,878 per barrel as speculators reduced their exposure amid a weakening trend overseas.
At the Multi Commodity Exchange, crude for delivery in March traded lower by Rs 7, or 0.18 per cent, at Rs 3,878 a barrel in a business turnover of 987 lots.
The oil for delivery in April was flat at Rs 3,925 a barrel in 8 lots.
Despite upbeat cues on OPEC's new production cuts and US sanctions on Venezuela oil industry, gloomy expectations of global recession and dwindling oil demand coupled with increased supply weighed on the oil prices, reports said.
The West Texas Intermediate (WTI) crude lost 0.28 per cent to USD 53.51 for March delivery, while the international benchmark Brent crude for April delivery fell 0.31 per cent to USD 61.79 per barrel at the New York Mercantile Exchange.