U. S. crude futures rose on Thursday as the report released by EIA showed that crude inventories fell more than expected and OPEC demand outlook remained optimistic. It rose by $1.63 and closed the day at $65.08.

Natural Gas witnessed a sharp gain of around 9% on the back of more than expected fall in inventory, indicating improvement in demand.

U. S. crude inventories fell 5.4 million barrels to 363.1 million barrels in the week ended May 22, the federal Energy Information Administration said on Thursday. This dwarfed the 700,000-barrel decline analysts had forecast in a Reuters poll.

The Organization of the Petroleum Exporting Countries kept output targets unchanged on Thursday, as expected, betting on a strengthening world economy and tentative signs of increased demand to boost oil prices.

The U. S. Energy Information Administration report showed total domestic gas inventories stood at 2.213 trillion cubic feet, 524 bcf, or 31 percent, above last year and 22 percent above the five-year average.

Crude oil prices touched $65 per barrel on NYMEX following weak dollar and a draw in inventory. Natural gas too shot up more than 8%. We recommend buying Crude oil and Natural gas at dips during the day.

Crude prices are rallying up continuously after the triangular break-out. In addition, RSI breached the earlier resistance, looking positive from here. ADX and +DI are in a perfect upward swing. Thus, crude prices are bullish above 2950 levels, for upside targets of 3150 and 3250 levels in the near term. Thus, one can buy crude during the day around 3050-70, targeting 3145-3160 on upside.

Natural Gas prices shot up in the previous session, touching exactly the resistance of 188. Thus, profit booking can come in during the day. But one can buy natural gas at every dip above 178.5. For the day, one can buy Natural Gas June contract between 180-184, with a Sl of 178.5, targeting 192-194 in a day or two.