Oil prices dropped by 1% on Wednesday due to a smaller-than-expected decline in U.S. crude stockpiles and concerns about weak Chinese demand. Brent crude fell by 90 cents (1.13%) to $78.65 a barrel, and U.S. West Texas Intermediate (WTI) dropped $1.01 (1.34%) to $74.52. U.S. crude inventories decreased by 846,000 barrels last week, less than the anticipated 2.3 million barrel draw. Matt Smith from Kpler noted that “ongoing strength in imports and a tick lower in exports helped keep the draw in check.” Concerns over weak demand in China also weighed on prices, with Barclays’ Amarpreet Singh stating that “demand in China remains weak, and the expected second-half rebound has yet to show credible signs of commencing.” Despite the decline, supply risks in Libya and the Middle East, including the ongoing conflict between Israel and Hamas, helped limit further price drops. Tim Snyder from Matador Economics remarked, “Geopolitical risks will continue to put world crude oil prices on edge.