SINGAPORE, July 17 Reuters Oil prices eased on Wednesday, with global benchmark Brent hovering near a onemonth low hit in the prior session on signs of weakening demand in China, although losses were capped by declining U.S. oil stockpiles.

Brent crude oil futures fell 15 cents, or 0.2, to 83.58 a barrel by 0620 GMT. U.S. West Texas Intermediate crude futures eased 13 cents, or 0.2, to 80.63.

Both benchmarks dropped in the three prior sessions, with Brent crude futures trading as low as 83.30 on Tuesday, the lowest since June 17.

While concerns over Chinese demand continue to weigh on investor sentiment, the drawdown in U.S. inventories is a factor limiting the downside in oil prices, said Priyanka Sachdeva, senior market analyst at Singaporebased brokerage Phillip Nova.

And steady U.S. retail data points out that the economy is still healthy despite higher borrowing costs. This neutralizes fears of a slowdown in the U.S. economy and fears of dented demand for oil, Sachdeva said.

China, the world39;s top 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 U.S. dollar has also weighed on oil prices, said ANZ Bank analyst Daniel Hynes in a note. The dollar index was slightly higher for a third consecutive session on Wednesday, making oil more expensive for investors holding other currencies.

In the United States, the world39;s largest oil producer and…