Oil prices drop

Oil prices fell on Monday as falling global stock markets amid renewed worries about the health of the global economy spurred profit taking. Traders liquidated their long positions at higher levels as worries over the health of the U.S. economy, and with it the global economy, hit equity markets across Asia and Europe.

Light sweet crude for March delivery on the NYMEX dropped $1.37 to $89.34 per barrel in the electronic trade.

Brent crude for March delivery on the ICE Future Exchange was down by $1.28 or 1.41% to $89.62 per barrel.

MCX crude oil February contract opened at Rs 3540, moved in the range of Rs 3554 – Rs 3514 and was trading at Rs 3518 per barrel, down by Rs 31 or 0.87% at 17:10 IST.

Activities remain subdued with key data’s set for release later this week. Attention this week will shift to Vienna, where OPEC ministers will meet on Feb. 1 to discuss production rates. Traders will also closely watch the U.S Fed meeting to see that whether it provides boost to the economy by slashing interest rate further. Marketmen will also eye the release of key crude oil and its product stockpiles data on Wednesday for further direction.