Oil prices extended gains on Wednesday after industry data showed a large draw in crude inventories in the US, the world's biggest fuel consumer, and as a hurricane in the Gulf of Mexico kept investors on edge.

Brent crude futures for October rose by 42 cents, or 0.49 percent, to $85.91 a barrel by 0748 GMT. The October contract expires on Thursday and the more active November contract was at $85.32, up 41 cents. US West Texas Intermediate crude futures rose 50 cents, or 0.62 percent, to $81.66.

Both benchmarks rallied more than a dollar on Tuesday as the US dollar slid after prospects of further increases to interest rates eased after softer US job data. US crude stocks fell by a bigger than expected 11.5 million barrels in the week ended Aug. 25, market sources said, citing American Petroleum Institute figures on Tuesday.