Oil prices edged lower on Wednesday, with global benchmark Brent trading near a one-month low hit in the previous session on signs of weakening demand in China, while losses were capped by declining U.S. oil inventories.

Brent crude futures were down 15 cents, or 0.2%, at $83.58 a barrel by 0620 GMT. WTI crude futures were down 13 cents, or 0.2%, at $80.63.

Both indexes have fallen in the previous three sessions, with Brent crude futures falling to $83.30 on Tuesday, the lowest since June 17.

Worries about Chinese demand continue to weigh on investor sentiment, while a decline in U.S. inventory is capping the decline in oil prices. Stable U.S. retail data suggests the economy remains healthy despite higher borrowing costs. This neutralises fears of a slowdown in the US economy and concerns about falling demand for oil.

China, the world’s largest oil importer, saw its economy grow 4.7% in the second quarter, official data showed earlier this week, the slowest growth since the first quarter of 2023.

A stronger US dollar is also seen weighing on oil prices. The dollar index was slightly higher for a third straight session on Wednesday, making oil more expensive for investors holding other currencies.

In the US, the world’s largest oil producer and consumer, crude oil inventories fell by 4.4 million barrels in the week ending July 12, according to data from the American Petroleum Institute (API). Analysts had forecast crude inventories falling by 33,000 barrels.

The US Energy Information Administration (EIA) is due to release its official report at 1430 GMT.

Retail sales, which pared oil price losses, were unchanged in June as a decline in auto consumption rates was offset by general strength elsewhere, a sign of consumer resilience that has bolstered economic growth expectations for the second quarter.

Meanwhile, rising geopolitical risk is also helping to limit declines in oil prices.