LONDON, Aug 21 Reuters Oil prices steadied on Wednesday, with benchmark Brent holding above 77 a barrel, after steady selloffs driven by expectations of reduced Chinese demand and diminishing concerns the conflict in the Middle East could spread and disrupt supply.

Brent crude futures were up 14 at 77.34 a barrel by 1142 GMT. U.S. West Texas Intermediate crude was 10 cents higher at 73.27.

Since peaking above 82 on Monday last week, Brent had shed 6.2 of its value by the end of trading on Tuesday, closing at a twoweek low of 77.20. WTI fell 7.5 in the same period.

As expectations swirl economic weakness in China, the world39;s biggest crude importer, will subdue demand, stocks in the United States, the world39;s biggest producer and consumer of oil, are set to rise.

U.S. crude oil stocks were forecast to have risen last week, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline and distillate stocks fell, however, according to the sources.

Official U.S. government inventory estimates are set to be released on Wednesday at 1030 a.m. 1430 GMT.

Meanwhile, U.S. Secretary of State Antony Blinken wrapped up a trip to the Middle East intended to help broker a ceasefire agreement in Gaza.

Blinken and mediators from Egypt and Qatar have raised hopes for a U.S. bridging proposal that could shrink the gaps between the two sides in the 10monthold war.

Hopes of a ceasefire between Israel and Hamas have weighed on oil, along with…