On economic concerns, oil declines almost to 2022 lows, alleviating supply concerns.

Concern over the recession and lessening worries that a Western restriction on Russian oil prices would considerably reduce supplies squeezed the price of oil on Wednesday, with Brent crude falling almost to its lowest level this year.

Large U.S. institutions' cautions about an impending recession weighted and helped the dollar. A rising dollar increases the cost of oil for owners of other currencies and tends to reduce interest in risky investments.

By 10:20 GMT, Brent crude had decreased $1.05, or 1.3%, to $78.30 per barrel. Earlier, it reached $77.74, its lowest level since January 3. To reach $72.25, the lowest level since late December, U.S. crude fell $1.24 or 1.7% to $73.01.

Claudio Galimberti, senior vice-president at Rystad Energy, stated that there is still a great deal of uncertainty in the markets and that oil production in Russia may not decrease as much as initially anticipated.

Tuesday marked the only occasion in 2022 that Brent fell below $80, unwinding the year's gains that had brought prices nearly to the all-time high of $147 in March following Russia's invasion of Ukraine.

There were fewer concerns that the price cap on Russian crude may disrupt supplies. In order to fight the cap imposed by Western powers, Russia is reportedly exploring solutions such as prohibiting oil sales to some nations, according to the Vedomosti daily on Wednesday.

The geopolitical risk premium has almost completely vanished, but inflation worries have not, according to oil broker PVM. Investors obviously aren't the least bit concerned about a potential supply crisis that could arise from the price cap and the EU's ban on Russian oil sales.

Prices were helped in part by expectations of a resurgence in Chinese demand.

The most significant adjustments to China's anti-COVID policy since the pandemic's start were revealed on Wednesday, lifting restrictions that had slowed the virus's spread but crippled the country's second-largest economy and prompted unrest.

The American Petroleum Institute's report from Tuesday, which said that oil stocks dropped by roughly 6.4 million barrels, according to market sources, provided more assistance.

The most recent U.S. supply report from the Energy Information Administration, which is due at 1530 GMT, is the subject of attention.