January-month contract also dropped by 2.20 per cent at Rs 2,001 per barrel with trading volume of 65,230 lots while February month contract down by 1.50 per cent at Rs 2,236 per barrel in trading of 7,993 lots.

The sharp fall in crude oil attributed to weak global trend. It fell for a fourth day in London before a US report expected to show more jobs lost in December, capping the biggest collapse in employment since World War II.

Poll

Who will win the Punjab Elections?

BJP 32.86%

AAP 41.43%

INC 25.71%

Submit

View All In Poll

Oil has dropped 11 per cent this week on concern that a deepening recession will cut fuel demand in the worlds largest energy consumer.

US crude stockpiles rose more than expected last week. It reached the highest since May.

Meanwhile, crude oil fell 83 cents to 40.87 a barrel on the New York Mercantile Exchange.