In early trading on Wednesday, there was little change in oil prices as the market was weighing the massive reduction in US crude oil inventories, while investors' focus remained on any potential supply disruptions caused by Hurricane Idalia.

As of press release, WTI crude oil futures rose 0.44% to $81.53; Brent crude oil futures rose 0.34% to $85.20.

The decline in the US dollar helped oil prices rise significantly in the previous trading day. Factors show that US consumer confidence and the weakening labor market have limited room for the Federal Reserve to continue raising interest rates. However, the increase in global supply and potential deterioration in demand have hindered further increases in oil prices.

It is also worth noting that more economic data from the United States and China will be released later this week, and the market remains vigilant as the world's largest oil consuming country still faces economic growth or slowdown this year.

Meanwhile, Hurricane Idalia in the Gulf of Mexico has become the focus of market attention, with Chevron (NYSE: CVX) stating that it has evacuated employees from three platforms, and Kinder Morgan (NYSE: KMI) also stating that the company plans to close an oil pipeline. So far, this storm is expected to hit the Eastern Gulf and will not hit major oil production facilities.

Anyway, API data on Tuesday showed that crude oil inventories decreased by over 11 million barrels in the week ending August 25th, as refineries increased production before the Labor Day holiday, which usually marks the end of summer demand peaks. But API data also indicates that gasoline and distillate inventories continue to increase, exacerbating concerns about sluggish fuel demand.

The official US inventory EIA data, which will be released later Wednesday, is expected to show a similar weak trend. Although energy demand has been weak throughout the summer so far, it is expected to continue to gradually decrease after the Labor Day holiday.

In addition to inventory data, the market is also concerned about potential supply increases in Russia and Iraq. Russia said that it would gradually reduce the ongoing production reduction in September, while Türkiye's energy minister said that the supply of a pipeline in northern Iraq was close to recovery.