** Australian energy stocks .AXEJ up as much as 1%; gain for a second consecutive session

** However, sub-index on track for first weekly drop in five; shed 3.8% so far in the week

** Oil prices edged higher as crude inventories in the U.S fell on higher demand as summer driving season ramped up, while easing concerns over Middle East supply risks offset some gains O/R

** Woodside Energy WDS.AX and Santos STO.AX up 0.4% and 0.7%, respectively

** Sub-index up 0.7% this year, as of last close

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com;))