Oil edges up on US crude stocks drop, impact of US tariffs on India

Oil prices rose on Wednesday on a larger-than-expected drop in U.S. crude inventories and the potential impact of new U.S. tariffs on India.

Brent crude futures were up 55 cents, or 0.8%, at $67.77 a barrel by 12:10 p.m. ET (1710 GMT). West Texas Intermediate crude futures gained 62 cents, or 1%, to $63.86. Both contracts fell by more than 2% on Tuesday.

U.S. crude inventories dropped by 2.4 million barrels to 418.3 million barrels last week, the Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.9-million-barrel draw.

U.S. gasoline stocks fell by 1.2 million barrels compared with expectations for a 2.2 million-barrel draw. Distillate stockpiles, which include diesel and heating oil, fell by 1.8 million barrels versus expectations for an 885,000-barrel rise, the EIA data showed.

"The gasoline demand number is supportive and shows people are getting ready to travel over the Labor Day weekend. This is the crescendo of the summer driving season, also the last big hurrah for the summertime gasoline blend," said Phil Flynn, senior analyst with Price Futures Group.