Crude oil futures inched up by 0.86 percent in early trade on the Multi Commodity Exchange (MCX), as traders enlarged their positions after the commodity rallied to a six-month high in the global markets on expectations of a pick-up in demand.

At 1030 hrs on the MCX platform, crude oil for the far-month August contract was trading 0.86 percent higher at Rs 3,180 per barrel, in trading of just one lot.

Similarly, the oil for delivery in the July-month contract moved up 0.16 percent to Rs 3,135 per barrel, with a trading volume of 84 lots, while the June contract rose 0.15 percent at Rs 3,092 per barrel, clocking 1,767 lots.

Meanwhile on the New York Mercantile Exchange, crude for July delivery gained $1.28 to $64.73 a barrel, a six-month high.

Market analysts said the rise in crude oil prices at the domestic futures market was due to a firming trend in the overseas markets after US data showed that consumers are spending money, showing signs of recovery in economy.

They said an unexpected drop of 5.4 million barrels in the US oil stocks last week also influenced oil prices.

Globally, oil has gained 27 percent in May as equities rose and the US dollar weakened, spurring demand for commodities.