Oil rises modestly as U.S. crude stockpiles dwindle | Reuters

Oil rises modestly as U.S. crude stockpiles dwindle | Reuters

Oil prices edged higher on Wednesday, rebounding from early losses after U.S. crude stockpiles unexpectedly fell and inventories at the nation's largest storage site hit their lowest level in three years.

Brent crude futures rose 10 cents, or 0.1%, to $85.18 a barrel as of 11:58 a.m. EDT (1558 GMT), close to multi-year highs.

November U.S. West Texas Intermediate (WTI) crude , which expires on Wednesday, rose 34 cents, or 0.4% to $83.30 a barrel, while the more active WTI contract for December was up 22 cents, or 0.3%, to $82.66 a barrel.

Crude prices have risenas supply has tightened, with the Organization of the Petroleum Exporting Countries maintaining a slow increase in supply rather than intervening to add more barrels to the market, and as U.S. demand has ramped up.