Oil prices saw a slight increase on Wednesday following a larger-than-anticipated drawdown in crude oil inventories, which somewhat alleviated concerns about China's slowing economy potentially affecting demand from the world's largest crude oil importer. Brent crude futures rose by 13 cents, or 0.17 percent, to reach $77.33 per barrel at 11:39 a.m. EDT, whereas US West Texas Intermediate crude futures remained unchanged at $73.17. Since reaching a peak of over $82 on the previous Monday, Brent had lost 6.2 percent of its value by the end of trading on Tuesday, closing at a two-week low of $77.20. WTI experienced a 7.5 percent decline over the same period. The US Energy Information Administration (EIA) reported on Wednesday that crude oil, gasoline, and distillate inventories decreased in the week ending August 16. Crude oil inventories dropped by 4.6 million barrels to 426 million barrels for the week ended August 16, according to the EIA, surpassing analysts' expectations of a 2.7 million-barrel draw in a Reuters poll. Meanwhile, investors continued to be concerned about the potential economic slowdown in China affecting the country's crude oil demand. China's economic challenges have led to poor processing margins and low fuel demand, which has restricted operations at both state-run and independent refineries. "We are currently evaluating everything based on the Chinese economy, and any negative developments in China will impact energy," stated Tim Snyder, chief economist at Matador Economics. Additionally, US employers added significantly fewer jobs than initially reported over the year leading up to March, according to the Labor Department. The department revised its estimate for total payroll employment from April 2023 to March 2024 downwards by 818,000. "The most painful aspect of this data is that it has led to a crisis of confidence," commented Matador Economics' Snyder. In other news, a Greek-flagged oil tanker was drifting in the Red Sea on Wednesday after multiple attacks that ignited a fire on the vessel and caused it to lose power, according to the UK maritime agency. Iran-aligned Houthi militants have been targeting international shipping near Yemen since November in support of Palestinians in the conflict between Israel and Hamas. The Red Sea, a crucial route for oil leading to the Suez Canal, could be threatened by sustained Houthi attacks, potentially impacting global crude oil flows. Meanwhile, US Secretary of State Antony Blinken concluded a Middle East trip aimed at brokering a ceasefire agreement in Gaza. Blinken and mediators from Egypt and Qatar have raised expectations for a US "bridging proposal" that might narrow the differences between the two sides in the 10-month war. "Hopes for a ceasefire between Israel and Hamas, along with ongoing demand concerns, have influenced oil prices," noted ING commodities strategists.