U. S. crude futures rose on Wednesday as the crude inventories fell more than expected. It rose by $1 and closed the day at $63.45. Fall in gasoline inventories also supported the upside in crude prices.

Natural Gas, which remained laggard, also rose by Rs. 1.2 on MCX.

U. S. inventories of crude oil fell more than expected last week as imports remained relatively low, the American Petroleum Institute said on Wednesday.

U. S. crude stocks fell a steep 2.8 million barrels, versus expectations for a 700,000- barrel draw, during the week ended May 22, as imports rose slightly to 8.87 million barrels per day but remained weak, the industry group said.

The federal Energy Information Administration will release its weekly petroleum inventory numbers at 11:00 am Eastern time on Thursday, a day later than usual due to Monday's Memorial Day holiday.

Crude oil futures are likely to take clues from the OPEC meeting to be held today and the report to be released by Energy Information Administration. We expect a drawdown in gasoline and crude oil stocks may support the crude prices. In spite of rising dollar, we don’t expect any major correction in crude oil prices.

Crude prices have given a triangular breakout and are moving up. The MACD is in the positive area with a positive difference and RSI has given an upside cross-over. Thus, one can buy crude on every dip around 3000 and 2970 as prices can remain above 2950 levels during the day, targeting 3050 and 3090 on upside. We can see crude touching 3125 on upside, if it remains above 2950.

Natural Gas prices have been moving up steadily for the past two sessions. It gave a high of 176.80 yesterday but went down to 171.5 at closing. However, it is positive for Natural gas that prices are maintaining above 170 levels. Thus, one can buy Natural gas at dips, targeting 178 during the day and 185-88 in the near term.