Oil prices steady --..

Oil prices steadied on Wednesday after trading higher on a bigger than expected drawdown in US crude stockpiles while economic headwinds from China and the euro zone capped gains.

Brent crude futures edged up 14 cents, or 0.16 per cent, to $86.38 a barrel by 1318 GMT. US West Texas Intermediate (WTI) crude futures gained 14 cents, or 0.17 per cent, to $82.95.

Both benchmarks hit their highest since April in the previous session but closed in negative territory after the U.S. National Hurricane Center said Hurricane Beryl was expected to weaken into a tropical storm by the time it enters the Gulf of Mexico this week.

The current path looks set to avoid key infrastructure in the Gulf of Mexico, Panmure Gordon analyst Ashley Kelty said of the risks to supply disruption.

US crude oil inventories fell by 9.163 million barrels in the week ended June 28, according to market sources citing American Petroleum Institute figures on Tuesday. However, gasoline inventories rose by 2.468 million barrels and distillates fell by 740,000 barrels.

OPEC output also rose for a second consecutive month in June, a Reuters survey found on Tuesday, as higher supply from Nigeria and Iran offset the impact of voluntary supply cuts by other members and the wider OPEC+ alliance.