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Oil edges higher on lower U.S. crude stocks, cautious outlook

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Oil prices crept higher on Thursday as a lower-than-expected drop in U.S. crude inventories and a weaker demand outlook kept investors cautious.

September Brent futures climbed 6 cents, or 0.1%, to$79.52 a barrel by 0929 GMT, while August U.S. West Texas Intermediate crude gained 21 cents, or 0.3%, to $75.56 a barrel.

"Yesterday's U.S. EIA oil stock report proved something of a disappointment for those that were looking for inspiration," PVM Oil analysts said. The Organization of the Petroleum Exporting Countries and the International Energy Agency have said China's demand is expected to continue to rise in the second half of this year and remain the main driver of global growth.

Crude prices may struggle to find a clear direction given a mixed global demand outlook in the next few weeks, Citi analysts said in a note.

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Oil steady on lower U.S. crude stocks, cautious demand outlookOil prices were little changed on Thursday, as a lower-than-expected drop in U.S. crude inventories and a potentially weaker demand outlook kept investors cautious.
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