Crude oil futures declined by Rs 27 to Rs 5,859 per barrel on Wednesday, as traders reduced their positions in response to sluggish demand in the spot market.

On the Multi Commodity Exchange (MCX), July delivery contracts dropped by 0.46% to Rs 5,859 per barrel, with a trading volume of 13,022 lots.

Analysts attributed the dip to participants unwinding their holdings due to muted buying interest in the physical market.