FX.co ★ Oil Recovers As Data Shows Inventory Decline

Oil prices steadied on Wednesday after having dipped around 2 percent in the previous session on demand worries amid an uncertain economic outlook.

Benchmark Brent crude futures rose 0.4 percent to $80.89 a barrel, while WTI crude futures were up half a percent at $77.47.

Prices recovered some ground after industry data showed a significant draw in crude oil stocks in the week ended April 21.

Data from the American Petroleum Institute revealed that U.S. crude inventories fell by about 6.1 million barrels last week, Analysts had expected crude inventories to fall by about 1.7 million barrels.

Gasoline inventories fell 1.9 million barrels, pointing to resilient demand in the world's largest oil consumer.

Official stockpiles data from the U.S. government will be released later in the session.

Weakness in the dollar also supported oil prices. The dollar was subdued ahead of the U.S. quarterly gross domestic product data due on Thursday, followed by the reading on the core PCE index on Friday.