Oil slipped over $1 on Wednesday as the Chinese economic data didn’t meet projections, raising worries about the status of the demand future, when the strength of the US dollar reduced investors' willingness to take on risk.

Brent crude slipped 1.6% to $77.03 per barrel meanwhile US WTI dipped 1.9%, at $71.05 per barrel.

China's economy grew 5.2% year over year in the Q4, exceeding analysts' projections and casting doubt on predictions that Chinese demand would drive global oil growth until 2024.

Even with growing worries that tankers may need to halt or reroute, raising shipping costs and delaying deliveries, the continuous air and naval battles in the Red Sea have not been sufficient to support oil.

Moreover, the greenback was trading close to a one-month high on Wednesday as expectations for significant interest rate cuts were tempered by remarks made by Federal Reserve officials. Buyers using other currencies have less desire for oil priced in dollars when the currency appreciates.