Oil held a gain as traders assessed signs of improving demand in Asia and a US industry report pointed to a modest drop in stockpiles.

West Texas Intermediate for August was steady above $72 a barrel after rallying by almost 2% on Wednesday. Emerging demand from refiners in China to Japan has bolstered prices of Middle Eastern oil, pointing to tighter balances.

US stockpiles dropped by more than 1 million barrels last week, according to people familiar with data from the industry-funded American Petroleum Institute. Official supply-and-demand figures are due later on Thursday.

Oil is headed for a small monthly increase as China takes steps to shore up the economy in the world's largest crude importer. Additional support for crude has come from the Organization of Petroleum Exporting Countries and its allies, with the cartel agreeing to curb production in a bid to revive prices.

WTI for August delivery was flat at $72.53 a barrel at 7:36 a.m. in Singapore.

Brent for August settlement added 1.6% to $77.12 a barrel on Wednesday.

Source : Bloomberg