Crude oil futures ended higher on Wednesday after data showed a big drop in U.S. crude inventories in the week ended August 25. Data from Energy Information Administration (EIA) showed crude inventories in the U.S. dropped by 10.584 million barrels last week after a 6.135 million barrels decline a week earlier. Gasoline inventory declined by 0.214 million barrels last week, much less than an expected drop of 0.933 million barrels, while distillate stockpiles increased by 1.235 million barrels in the week. Besides, the dollar's continued weakness and the impact of Hurricane Idalia on operations in oil fields along Florida's Gulf Coast raised supply concerns and contributed as well to the increase in oil prices.
Benchmark crude oil futures for October delivery gained $0.47 or about 0.6 percent to settle at $81.63 a barrel on the New York Mercantile Exchange. Brent crude for October delivery surged $0.37 or 0.43 percent to settle at $85.86 a barrel on London's Intercontinental Exchange.