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Oil prices held largely steady on Wednesday after settling at five-month highs in the previous session as energy companies cut production at U.S. Gulf Coast oil refineries and U.S. and Chinese officials reaffirmed their commitment to a Phase 1 trade deal.
Both Benchmark Brent crude and U.S. West Texas Intermediate crude futures were up about 0.1 percent at $46.33 a barrel and $43.39, respectively.
With Tropical Storm Laura expected to strengthen into a major Hurricane, Texas and Louisiana are sending resources in and evacuating residents out of the storm's path.
Marco weakened to a tropical depression after making landfall, while Laura is headed to the U.S. mainland.
According to the U.S. Bureau of Safety and Environmental Enforcement (BSEE), approximately 84.3 percent of the current oil production and 60.9 percent of the natural gas production in the Gulf of Mexico were shut-in.
Oil prices also remain supported by industry data showing a drop in U.S. crude inventories.
The American Petroleum Institute (API) reported on Tuesday a draw in crude oil inventories of 4.524 million barrels for the week ending August 21, while analysts had predicted an inventory draw of 3.694-million barrels.
The U.S. government's Energy Information Administration report will be out later today.
