On Wednesday, oil prices dropped for a fourth day as anxieties about a weakening European market outweighed concerns about delays to Middle East supplies resulting from the Israel-Hamas conflict in Gaza.

Brent crude dipped 0.3%, to $87.79 per barrel meanwhile U.S. West Texas Intermediate crude futures dropped 0.4% to $83.43 per barrel.

This month's unexpected decline in business activity figures for the Euro Zone raised concerns that the region would enter a recession and hampered the forecast for oil demand. According to Euroilstock data, the region's oil refineries have been using less crude overall than they were a year ago due to the region's lackluster economic growth.

The world's largest oil importer, China, has approved a law to issue 1 trillion yuan ($137 billion) in sovereign bonds and permit local governments to issue additional debt from their 2024 allotment in an effort to stimulate the economy. This could provide some support for crude prices.

However, Beijing set a limit of 1 billion metric tons for its oil refining capacity by 2025 in an effort to simplify its massive oil processing industry and reduce carbon emissions, which may limit China's demand for crude oil.

The world's largest oil consumer, the United States, has declining crude oil reserves, which helped to sustain prices. The week ended on October 20 saw a decrease in U.S. inventories of roughly 2.7 million barrels, according to market sources quoting data from the American Petroleum Institute on Tuesday.