Oil held a two-day drop as concerns about waning demand in top importer China were tempered by an industry-funded report pointing to a decline in US inventories.

West Texas Intermediate futures traded below $80 a barrel, after declining by 1.3% over the previous two days. The dour outlook in China continues to weigh on sentiment. The industry-funded American Petroleum Institute said nationwide stockpiles fell 2.4 million barrels last week, a bullish signal if confirmed by official data later Wednesday.

Crude’s rally since late June has faltered over the last couple of weeks as a worsening macroeconomic outlook outweighed a tightening market following supply cuts from OPEC+ kingpins Saudi Arabia and Russia. Futures are now trading just below where they were at the start of the year.

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