On Wednesday, oil prices stabilized as investors balanced their concerns about China's fragile economy with the United States' tighter supply.

Brent crude advanced by 20 cents to $85.09 a barrel by 0831 GMT, while WTI inched up by 18 cents higher to $81.17 per barrel.

China's sluggish economy is in the spotlight after retail sales, industrial output, and investment numbers fell short of forecasts, raising worries about a more significant, protracted downturn in growth.

Concerns have been raised regarding China's ability to achieve its about 5% annual growth target in light of the July activity statistics.

In response to statistics showing increasing pressure on the economy, primarily from the real estate industry, China's central bank made a slight reduction in interest rates. However, economists think the reduction was insufficient to have a significant impact.

China, the largest oil importer in the world, is expected to boost crude demand for the remainder of 2023, according to both the International Energy Agency (IEA) and the OPEC+ group, which is made up of OPEC and its allies.