The world's largest consumer of fuel, showed strong demand on Wednesday, which outweighed worries about demand elsewhere. Oil prices increased by about 1%, trading close to their highest level since April.

Brent crude futures advanced by 0.90% to $85.67 per barrel, meanwhile US WTI added 0.93% to $82.13 per barrel.

Compared to analysts' expectations for a loss of 1.37 million barrels, U.S. oil stockpiles dropped by 15.4 million barrels in the week ending July 28, according to market sources quoting American Petroleum Institute numbers.

With demand outpacing supply due to Saudi Arabia's significant production cuts, OPEC which has supported prices, crude oil stockpiles have also started to decline in other regions.

Analysts anticipate that Saudi Arabia will announce at a meeting of producers on Friday that it will continue its voluntary oil output trim of 1 million barrels per day (bpd) for an additional month, to cover September.

Price increases were constrained by worries that China, the world's largest oil importer, may delay oil purchases as prices climb and by dismal PMI data reported this week that suggest fuel consumption may be less than anticipated.