LONDON, July 24 (Reuters) - Oil prices edged higher on

Wednesday but were still close to their lowest level in six

weeks with few signs of the fuel consumption surge usually seen

at this stage of the northern hemisphere summer.

Still, prices snapped three straight sessions of decline on

falling U.S. crude inventories and growing supply risks from

wildfires.

Brent crude futures for September rose 71 cents, or

0.9%, to $81.72 a barrel by 1117 GMT. U.S. West Texas

Intermediate crude for September increased 75 cents,

or 1%, to $77.71 per barrel.

The likely reason for the wider sell-off has been the

"diminishing hopes of demand resurrection," with "an admission

from refiners that the summer leap in consumption is simply not

taking place", said Tamas Varga of oil broker PVM.

U.S. oil refiners are expected to report sharply lower

second quarter earnings versus a year ago after a listless

summer driving season weakened refining margins, energy analysts

said.

Oil prices fell to a six-week low on Tuesday, with Brent

closing at its lowest level since June 9 on ceasefire talks

between Israel and Hamas in a plan outlined by U.S. President

Joe Biden in May and mediated by Egypt and Qatar.

Prices also suffered due to continued concern that the

economic slowdown in China, the world's biggest crude importer,

would weaken global oil demand.

Meanwhile, crude oil deliveries to India, the world's

third-biggest oil importer and consumer, slipped in June to

their lowest since February, government data showed.

WTI lost 7% over the previous three sessions, while Brent

was down nearly 5%.

Buoying prices, U.S. crude oil, gasoline and distillate

inventories fell for the fourth straight week in the previous

week, according to market sources citing the American Petroleum

Institute (API), reflecting steady demand in the world's largest

consumer of oil.

That would be the first time crude stocks in the United

States fell for four weeks in a row since September 2023.

Official government oil inventory data is due for release

later on Wednesday.

Wildfires in Canada forced some producers to curtail

production and threatened a large amount of supply, ING analysts

said.

"Market is nearing oversold territory and we still believe

that the fundamentals support prices moving higher from current

levels over the remainder of the third quarter on the back of a

deficit environment," ING analysts said in a note.