Despite larger than anticipated draws in U.S. crude oil and fuel stocks, oil prices dipped slightly on Wednesday as the market impacted the negative economic forecasts against projections of falling U.S. crude inventories and plans by OPEC+ producers to cut production.

Brent crude futures slipped by 0.6% to $84.45 per barrel while West Texas Intermediate US crude dropped 0.7% to $80.13 per barrel.

According to the Energy Information Administration, crude inventories plunged beyond expectations by 3.7 million barrels last week.

Stocks of distillate and gasoline both slid by 3.6 million and 4.1 million barrels.

The number of job opportunities in the United States in February slumped to its lowest level in almost two years, indicating a slowdown in the labor market.

With dismal economic statistics from the US and China heighten demand concerns, traders will be watching this week's non-farm payrolls data for clues on broader economic trends.

OPEC+ dropped a bombshell on the market with the decision of reducing crude supply beginning in May, given that the global crude balance was already anticipated to tighten during the summer, which will undoubtedly bolster crude prices.