Crude oil futures ended lower on Wednesday but finished well above their early low after the U.S. government inventory report showed crude supplies fell last week and was seen as more supportive than industry data. Natural gas rose by over 3 percent on MCX as well as NYMEX.

IN FOCUS:

Japan's crude oil import volume in June tumbled 19.1 percent from a year earlier to an 18-year low, government data showed on Thursday, as scheduled maintenance and weak demand reduced domestic refiners' need to ship in crude oil.

China, the world's No. 2 oil consumer, imported 16.61 million tonnes (4.04 million bpd) in June, up 14 percent on the year, surpassing Japan as the world's second-biggest crude importer for a second straight month.

The U.S. Energy Information Administration's inventory report released on Wednesday showed crude oil supplies down 1.8 million barrels in the week to July 17. Gasoline supplies were up 800,000 barrels and distillate stocks were up 1.2 million barrels.

The U.S. National Hurricane Center said Wednesday a tropical wave over the Dominican Republic and Haiti would not develop into a tropical cyclone, while some disorganized cloudiness and storms over the Bahamas also showed no signs of development.

FUNDAMENTAL OUTLOOK:

Crude oil price may edge higher and trend for the day is up. Natural gas inventory built up is expected to be around 68bcf. Natural Gas prices may edge higher during the intraday session.