Crude oil futures edged lower on Tuesday, falling Rs 8 to Rs 5,579 per barrel as traders pared positions amid muted demand in the spot market.

On the Multi Commodity Exchange (MCX), September delivery contracts dropped by Rs 8, or 0.14%, to 5,579 per barrel in a turnover of 4,297 lots.

Analysts said the decline was driven by participants offloading holdings due to sluggish demand in the physical market.