Oil prices dropped slightly on Wednesday, after rising more than 1% in the previous session.
Brent crude futures dipped 8 cents, or 0.1%, to $68.39 a barrel by 7:30 AM WAT, while U.S. West Texas Intermediate crude futures fell 6 cents, or 0.1%, to $64.46 a barrel.
The benchmarks settled more than 1% higher in the last trading session due to concerns that Russian supplies may be disrupted.
Reuters reported on Tuesday that three industry sources said Russia’s oil pipeline monopoly Transneft, has warned producers they may have to cut output following Ukraine’s drone attacks on critical export ports and refineries.
Investors are also awaiting the outcome of the Federal Reserve’s September 16–17 meeting, with a new governor, Stephen Miran, on leave from the Trump administration, joining the deliberations, and a second policymaker, Lisa Cook, still facing efforts by President Donald Trump to oust her.
The central bank is widely expected to cut interest rates by 25 basis points on Wednesday, which should stimulate the economy and boost fuel demand
Data on Tuesday showed U.S. crude and gasoline stocks fell last week, while distillate stocks rose, Reuters quoted market sources as saying, citing American Petroleum Institute figures.
Crude stocks fell by 3.42 million barrels, and gasoline inventories fell by 691,000 barrels in the week ending September 12, while distillate inventories rose by 1.91 million barrels from the prior week, the sources said.
READ ALSO: UN Chief Proposes 15% Budget Cut In 2026
The market will be watching to see whether data from the U.S. Energy Information Administration on Wednesday matches that.
A Reuters poll showed analysts estimated crude inventories fell by about 900,000 barrels last week, distillate stockpiles rose by about 1 million barrels, and gasoline stockpiles rose by about 100,000 barrels.
