UPDATE 9-Oil edges up after sharp U.S. crude inventory drop

* U.S. crude stocks post steepest draw this year as imports
slide
* Some U.S. states still registering record coronavirus
infections

(New throughout, updates prices, market activity and comments
to settlement)
By Laila Kearney
NEW YORK, July 29 (Reuters) - Oil prices rose on Wednesday
after a steep drop in U.S. crude inventories, but another record
day for coronavirus cases worldwide kept gains in check.
Brent crude futures LCOc1 settled at $43.75 a barrel, up
53 cents, or 1.2%. U.S. West Texas Intermediate crude futures
CLc1 settled at $41.27 a barrel, gaining 23 cents, or 0.6%.
U.S. crude oil inventories fell by 10.6 million barrels last
week to 526 million barrels, the Energy Information
Administration said, the largest drawdown since December.
EIA/S
Net U.S. crude imports fell 1 million barrels per day to 1.9
million bpd, the EIA said.
The fall in crude stocks was likely a result of supply cuts,
agreed in April by the Organization of the Petroleum Exporting
Countries and its allies, finally being realized.
"The expectation is that the OPEC cuts are going to lead to
bigger draws in the United States and this could be the
beginning of it," said Phil Flynn, senior analyst at Price
Futures Group in Chicago.
A record number of new coronavirus infections were reported
globally. In the United States, nearly 150,000 people have died
from the novel coronavirus - the most for any country - having
risen by 10,000 in 11 days, according to a Reuters tally.
"The virus is spreading like wildfire across the Americas
while Europe and Asia are displaying worrying signs of a second
surge in cases," said Stephen Brennock of oil brokerage PVM.
Six U.S. states reported one-day records for coronavirus
deaths and Texas cases passed the 400,000 mark. Attempts to provide relief amid the outbreak were in
disarray after U.S. Republicans on Tuesday disagreed over their
own plan for providing $1 trillion in new coronavirus aid.
The U.S. Federal Reserve pledged to continue to
help prop up the economy, providing some support to oil.
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CHART: U.S. oil may revisit July 27 low of $40.48
Brent oil may edge up to $44.10 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>