U. S. crude oil futures settled at the highest level in seven months on Wednesday, gaining sharply on government data showing a larger-than-expected drawdown in crude oil inventories last week.

New York Mercantile Exchange natural gas futures ended lower on Wednesday despite firmer crude, as concerns about mild Northeast and Midwest weather, record high inventories and a weak economy weighed on prices.

The U. S. Energy Information Administration's inventory report for the week to June 5 showed that domestic crude stocks fell 4.4 million barrels last week, against the forecasted 400,000 barrel drawdown.

The National Weather Service eight- to 14-day outlook on Wednesday called for normal or below normal temperatures for most of the nation, with above seasonal readings expected in parts of the Mid-Atlantic and South from Texas to Florida.

Bullish inventory report triggered sharp upside in crude prices and weaker dollar seems to be adding support to crude oil prices. We continue to remain bullish on crude oil and our bias is on upside, natural gas we recommend to buy July contract in the range between Rs. 176-178 we may see some selling due to natural gas inventory but overall trend is intact.