Oil edged up on Wednesday after a larger-than-expected drop in U.S. inventories suggested robust demand and helped offset worries over interest rate hikes.

Crude stocks fell by about 2.4 million barrels, market sources said, citing data from industry group American Petroleum Institute (API).

The Energy Information Administration's official supply report is due out at 1430 GMT.

Brent crude was up 9 cents, or 0.1%, to $72.35 a barrel at 0806 GMT, while West Texas Intermediate (WTI) U.S. crude gained 26 cents, or 0.4%, to $67.96.

While outright prices gained on Wednesday, the discount of the prompt Brent contract to the next month has deepened, a structure called contango which indicates ample supply.

Brent is down about 15% this year as rising interest rates hit investor appetite, while China's economic recovery has faltered after several months of softer-than-expected consumption and other data.

Source : Reuters