Brent crude oil traded steadily below $107 on Wednesday morning as markets anxiously awaited the outcome of the US Federal Reserve's two day policy meeting. The commodity traded at $106.85 as supply disruptions and concerns about waning global demand played at odds.
Crude supply outages in Iraq, South Sudan, Iran and Libya have contributed heavily to Brent's strength recently. Despite worries about increasing US shale oil supplies and an economic slowdown in China, the commodity has traded well above $100 on concerns about supply cuts.
Investors will be focused on the Fed's statement, due out on Thursday, for clues about the bank's timeline for tapering its $85 billion per month stimulus spending. Crude can expect a negative impact if the Fed confirms speculation that it will ease back on its bond buying plan beginning in September.
