KUALA LUMPUR, Sept 21: Malaysian crude palm oil futures closed higher on Thursday, boosted by fresh buying interest at lower levels, dealers said.

The benchmark third-month December contract on the Bursa Malaysia Derivatives exchange closed up seven ringgit to 1,535 ringgit ($418) a ton after trading in a range of 1,521 to 1,541 ringgit.

These gains came after more than 2 per cent decline on Wednesday. Other traded contracts finished up between two and six ringgit. Overall volume stood at 10,559 lots of 25 tons each.

Everyone felt the market is bit oversold, so there was buying in the afternoon session, one dealer said.

The market had decline in the morning session because of lower prices of crude oil.

Vegetable oils like palm and soyaoil often track crude oil prices because of the rapidly expanding global biofuel industry.

Chicago Board of Trade's October soyaoil settled 0.07 cent lower at 24.16 cents per lb and December was 0.04 down at 24.51.

Oil prices fell below $60 a barrel on Wednesday for the first time in six months on swelling US winter fuel stocks.

Oil has retreated roughly $18 from its July record of $78.40 in its steepest decline in 15 years.

In the physical crude palm oil market, September shipments were quoted at 1,510/1,515 ringgit a ton. Trades were done at around 1,495 and 1,515 ringgit a ton.—Reuters