(RTTNews) - The price of crude oil eased near $86 Wednesday morning as traders look to the outcome of a two-day Federal Reserve meeting, hoping for new stimulus measures to help lift the sagging U.S. economy.
Crude oil is likely to remain in a narrow range ahead of FOMC decision, and any disappointment from the Fed would put pressure on oil prices, analysts opined.
Light Sweet Crude Oil (WTI) futures for November delivery, the most actively traded contract, edged down $0.55 to $86.37 a barrel. Yesterday, oil snapped its 2-session losing streak to end higher amid speculation that Federal Reserve will take steps to bolster the U.S. economy, increasing fuel consumption.
Tuesday after the market hours, the API said U.S. crude oil inventories rose 2.60 million barrels and gasoline stocks edged up 62,000 barrels in the week ended September 16.
This morning, the U.S. dollar was ticking higher versus the euro and hovering near its 9-month high against sterling. The buck was ticking higher against the Swiss franc and trading flat versus the yen.
In economic news, Bank of England policymakers voted unanimously for a second consecutive meeting to retain the benchmark interest rate at record low, while signaling that they are exploring the possibility of adding more stimulus in the face of deteriorating economic prospects both at home and abroad, the minutes of the September 8 policy meeting revealed Wednesday.
Traders will look to the data on existing homes sales from the National Association of Realtors, due out at 10.00 a.m ET. Economists expect the sales to have edged up to 476,000 from the last month's 467,000.
Traders will look to cues from the Federal Reserve Open Market Committee, which is concluding its 2-day meeting later today.
Today during trading hours, the EIA will release its U.S. crude oil inventories report for the week ended September 16. Analysts expect crude oil inventories to decline between 1 and 2 million barrels.
