Forexpros - Crude oil futures were largely unchanged during European morning trade on Wednesday, swinging between small gains and losses as markets awaited a U.S. government report on U.S. oil supplies later in the day as well as a meeting of Federal Reserve policy makers. On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD103.67 a barrel during European morning trade, easing up 0.12%. The June contract traded in a tight range between USD103.83, the daily high and a session low of USD103.57 a barrel. Oil traders were looking ahead to the U.S. Energy Information Administration’s closely-watched weekly report on U.S. stockpiles of crude and refined products later in the day. The report was expected to show that U.S. crude oil stockpiles rose by 2.65 million barrels last week to the highest level since May, underscoring fears over a slowdown in oil demand from the U.S. After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 3.64 million barrels last week, compared to expectations for a modest decline of 0.68 million barrels. Markets were also awaiting the outcome of the Federal Reserve's two-day policy-setting meeting later in the day. While the Fed is expected to reiterate its intent to hold U.S. interest rates near zero through 2014, traders will be seeking clues towards the bank’s attitude on further quantitative easing measures. Traders are hoping there might be some show of support for a third round of bond purchases to support the U.S. economy. Previous rounds of asset purchases by the Fed weakened the dollar and sent commodity and equity prices soaring. The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. Wall Street investment bank Goldman Sachs said in a report Tuesday that oil prices will rise as demand is expanding faster than production capacity even as the global economy slows. Goldman reiterated a recommendation to buy September futures for West Texas Intermediate oil. Oil prices ended higher on Tuesday as investors were relieved when a successful auction sent yields on Dutch debt lower, a day after the government in the Netherlands collapsed in a crisis over budget cuts. However gains were limited after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills. Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery eased up 0.05% to trade at 118.22 a barrel, with the spread between the Brent and crude contracts standing at USD14.55. Brent prices were supported by supply disruption fears stemming from a production stoppage at the North Sea Buzzard oil field, Britain's largest.

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